EXHIBIT 99.9
CONTACT: Linda J. Wachner Robert D. Siegfried
(212) 370-8205 Kekst and Company
(212) 521-4832
William S. Finkelstein
(212) 370-8287
FOR IMMEDIATE RELEASE
WARNACO RECEIVES APPROVAL OF AGREEMENTS
FOR REFINANCING TO AUGUST 2002 BY 100% OF LENDER GROUPS;
ALSO PROVIDES REVISED GUIDANCE FOR FISCAL 2000 OUTLOOK,
ANNOUNCES ADDITIONAL OPERATING INITIATIVES
AND SUSPENDS FUTURE COMMON STOCK DIVIDENDS
LENDER GROUPS APPROVE AMENDED DEBT FACILITIES OF $2.56 BILLION;
FINANCING AGREEMENTS EXPECTED TO CLOSE BY OCTOBER 6, 2000
EXPANDED OPERATING INITIATIVES EXPECTED TO ACHIEVE ADDITIONAL
ANNUALIZED COST SAVINGS OF $50 MILLION PER YEAR;
Q3 2000 AFTER-TAX CHARGE OF $50 TO $60 MILLION ANTICIPATED
REVISES GUIDANCE ON OPERATING RESULTS
FOR FY 2000 TO RANGE OF $[0.25]
TO $[0.30] AND FOR Q3 2000 TO
RANGE OF $[0.45] TO $[0.50]
PER DILUTED SHARE BEFORE CHARGES AND INVESTMENT GAINS
NEW YORK, NEW YORK, SEPTEMBER 29, 2000 --The Warnaco Group, Inc. (NYSE:WAC)
today announced that 100% of its lender groups, led by The Bank of Nova
Scotia, Salomon Smith Barney, Inc., Citibank, N.A., Morgan Guaranty Trust
Company of New York, Commerzbank, A.G. and Societe Generale, earlier today
approved agreements to amend and extend up to $2.56 billion of existing
financing facilities on a secured basis through August 12, 2002. The
Company said that the closing of the new facility agreements, which is
expected to be completed by October 6, 2000, remains subject only to
customary closing conditions including the execution of final
documentation.
As part of the agreements reached with the lender groups approving the
financing transactions, Warnaco said that it agreed to reduce overall
lender commitments to $2.56 billion from $2.9 billion, which the Company
said it expects will provide sufficient working capital liquidity going
forward, and to suspend future cash dividends on Warnaco's common stock.
Warnaco expects to complete the payment of the previously declared cash
dividend of $0.09 per share of common stock payable on October 5, 2000 to
holders of record as of September 6, 2000. The Company said it also
received a limited waiver of compliance with financial covenants in certain
of its existing debt facilities in order to facilitate completion of the
financing transactions by October 6, 2000. Warnaco said that upon
satisfaction of the closing conditions to and completion of the planned
transactions, the Company will have no material debt maturing prior to
August 2002. The amended financing facilities will be secured by assets
owned by Warnaco and its subsidiaries.
Warnaco said that it anticipates taking an after-tax charge in the third
quarter of 2000 of approximately $50 to $60 million in connection with
additional operating initiatives being implemented. These initiatives are
expected to create annualized cost savings of $50 million through
additional workforce reductions, inventory clearance and facility
consolidations. Commenting on its revised outlook for Warnaco's 2000 fiscal
year, the Company said that it now expects to report an operating loss,
before charges and investment gains, in the range of $0.25 to $0.30 per
diluted share for the 2000 fiscal year and in the range of $0.45 to $0.50
per diluted share for the third quarter of the 2000 fiscal year. The
revised outlook takes into account reduced revenues from sales to retailers
as a result of the difficult business environment affecting the apparel
industry in general, increased interest expense upon completion of the
financing transactions, and additional markdowns in connection with further
inventory reductions. Warnaco said that it will announce actual results for
the third quarter of 2000 on or about November 2, 2000 as previously
scheduled.
Linda Wachner, chairman and chief executive officer of Warnaco, said, "Our
new financing agreements, which have now been approved by all of the
members of our lender groups and which we expect to complete next week,
together with the operational initiatives that we have been implementing
and expanding over the last several months, provide a foundation for the
Company's future performance. We expect that our earlier global operating
initiatives program and the additional operating initiatives that we are
presently implementing should result in substantial improvement in
operating earnings and Warnaco returning to profitability in 2001. The very
difficult business environment facing the apparel industry generally for
the remainder of this year and Warnaco's present and anticipated near-term
financial performance underscore the prudence of our agreement with our
lenders to suspend future common stock dividends at this time. We are fully
engaged and committed to achieving enhanced financial performance, building
the long-term business enterprise value of our Company and reinstating the
common stock dividend when appropriate in the future."
Warnaco said that the revised bank commitment letter from its lead lenders
and the limited waivers will be filed on Form 8-K with the Securities and
Exchange Commission.
The Warnaco Group, Inc., headquartered in New York, is a leading
manufacturer of intimate apparel, menswear, jeanswear, swimwear, men's and
women's sportswear, better dresses, fragrances and accessories sold under
such brands as Warner's(R), Olga(R), Fruit of the Loom(R) bras, Van
Raalte(R), Lejaby(R), Weight Watchers(R), Bodyslimmers(R), Izka(R), Chaps
by Ralph Lauren(R), Calvin Klein(R) men's, women's, and children's
underwear, men's accessories, and men's, women's, junior women's and
children's jeans, Speedo(R)/Authentic Fitness(R) men's, women's and
children's swimwear, sportswear and swimwear accessories, Polo by Ralph
Lauren (R) women's and girls' swimwear, Oscar de lA Renta(R), Anne Cole
Collection(R), Cole of California(R) and Catalina(R) swimwear, A.B.S.(R)
Women's sportswear and better dresses and Penhaligon's(R) fragrances and
accessories.
This press release contains forward-looking statements, which are subject
to certain risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the forward-looking
statements. Factors that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements include
the ability of the Company to satisfy the conditions and requirements of
financing commitments accepted by the Company, the effect of worldwide,
regional and country general economic conditions, the overall level of
consumer spending, the performance of the Company's products within the
prevailing retail environment, competitive pricing pressures, consumer
preferences including acceptance of both new designs and newly-introduced
product lines, financial difficulties encountered by customers, inflation,
merchandise supply constraints, interest rate movements and access to
capital. Consequently, all of the forward-looking statements made in this
press release are qualified by these and other factors, risks and
uncertainties. Readers are also directed to consider other risks and
uncertainties discussed in documents filed by the Company with the
Securities and Exchange Commission.
