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Coty tender offers for 6½%, 5% notes oversubscribed at early deadline
By Angela McDaniels
Tacoma, Wash., Nov. 21 – Coty Inc. said the tender offers for its 6½% senior notes due 2026 and 5% senior secured notes due 2026 were oversubscribed as of 5 p.m. ET on Nov. 21, the early tender date.
As previously reported, the company offered to purchase up to $150 million of the $473,017,000 of outstanding 6½% notes and up to $250 million of the $900 million of outstanding 5% notes.
Holders had tendered $241,182,000 principal amount of the 6½% notes and $523,855,000 principal amount of the 5% notes as of the early tender date, according to a company news release.
The company will accept $150 million principal amount of the 6½% notes using a proration factor of 62% and $250 million of the 5% notes using a proration factor of 48%.
Pricing will be set at 10 a.m. ET on Nov. 22 using 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 by the early tender date and accrued interest to the early settlement date, which is expected to be Nov. 30.
The offers began Nov. 7 and were scheduled to expire at 5 p.m. ET on Dec. 7.
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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