As the aftershocks of the coronavirus pandemic -- and hints of a possible second wave -- ripple through the economy, Abercrombie & Fitch (NYSE:ANF) continues to extend its cost-cutting measures, while preparing to sell $300 million worth of bonds. The company described its latest actions in a Current Report filed today with the Securities and Exchange Commission (SEC).

Abercrombie & Fitch states in the filing it is "significantly reducing expenses to better align operating costs with sales," which it projects will lead to "an approximately $200 million reduction in annualized expenses for fiscal 2020." Some of the measures it's adopting to meet this goal include employee "payroll actions" along with its ongoing suspension of dividends.

Corporate bonds.

Image source: Getty Images.

The company also included a table showing how it reconciles income and loss figures to the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) it reports. The data provided shows a net loss of $18 million for the quarter ending May 4, 2019, and a net loss of $244 million for the same quarter this year (ending May 2, 2020). Adjusted EBITDA for the quarter was $19 million in 2019 and negative $111 million in 2020.

Abercrombie & Fitch also reported it is privately offering $300 million in senior secured notes (bonds), maturing in 2025, to raise additional liquidity. The bonds are secured by liens against the company's "real property, intellectual property, equipment, [and] equity interests" along with secondary liens against its "accounts and credit card receivables, inventory, deposit accounts, securities accounts, intercompany loans and related assets." The money will be used to repay earlier bond issues, plus part of Abercrombie's $210 million March drawdown on its revolving credit.