Coach to price five- and 10-year senior notes via three bookrunners

By Cristal Cody

Tupelo, Miss., June 6 – Coach, Inc. is marketing senior notes due 2022 and 2027 in two tranches (Baa2/BBB-/BBB), according to a 424B5 filed with the Securities and Exchange Commission on Tuesday.

The deal size is expected to be $1 billion, according to ratings notices from Moody’s Investors Service, Fitch Ratings and S&P Global Ratings.

BofA Merrill Lynch, J.P. Morgan Securities LLC and HSBC Securities (USA) Inc. are the bookrunners.

The transaction has a 101% change-of-control put.

Coach announced in May plans to acquire Kate Spade & Co. for $18.50 a share in cash. Proceeds from the offering will be used, along with cash on hand and cash on hand at Kate Spade and about $1.1 billion in expected term loans, to fund the acquisition. If the merger has not closed by Feb. 7, 2018, Coach must redeem the notes at 101 under a special mandatory redemption.

Coach is a New York City-based designer of luxury goods.

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