Coty tenders for $150 million 6½% notes, $250 million 5% notes due 2026

By Wendy Van Sickle

Columbus, Ohio, Nov. 7 – Coty Inc. began offers to purchase for cash up to $150 million of its $473,017,000 of outstanding 6½% senior notes due 2026 (Cusips: 222070AB0, U2203CAA9) and up to $250 million of its $900 million of outstanding 5% senior secured notes due 2026 (Cusips: 222070AE4, U2203CAE1), according to a news release.

Pricing for each series will be based on the 3.75% U.S. Treasury note due April 15, 2026 plus a spread of 140 basis points.

For each series, the consideration will include an early tender premium of $30 per $1,000 principal amount of notes tendered that will be paid only to holders who tender their notes by 5 p.m. ET on Nov. 21, which is also the deadline to withdraw tenders.

The company will also pay accrued interest to the settlement date.

The offer will expire at 5 p.m. ET on Dec. 7.

Early settlement is expected on Nov. 30 and final settlement on Dec. 12.

Coty plans to fund the purchase of the tendered notes with available cash on hand and other sources of liquidity. The company said the purpose of the tender offers is to reduce its total outstanding public debt.

BofA Securities, Inc. (888 292-0070, 980 683-5454, 980 388-4370 or debt_advisory@bofa.com) and J.P. Morgan Securities LLC (866 834-4666 or 212 834 4818) are the dealer managers.

D.F. King & Co., Inc. (800 290-6424, 212 269-5550 or coty@dfking.com) is the tender and information agent.

Coty is a New York-based beauty company.

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