By Andrea Heisinger
New York, Feb. 25 - Avon Products, Inc. priced an upsized $850 million of senior unsecured notes (A2/A/A) in two tranches Wednesday, an informed source said.
The size was increased from a $750 million total.
The $500 million of 5.625% five-year notes priced at 99.455 to yield 5.752%, or Treasuries plus 375 basis points.
The $350 million of 6.5% 10-year notes priced at 98.746 to yield 6.674%, or Treasuries plus 375 bps.
The five- and 10-year notes each came in line with price talk, which was "the mid-to-high 300s," the source said.
Both tranches have a make-whole call of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc.
Senior co-managers were Banc of America Securities LLC and Citigroup Global Markets Inc.
Junior co-managers were Mitsubishi UFJ Securities, HSBC Securities, Goldman Sachs & Co., Santander Investments and BNP Paribas Securities.
Co-managers were BBVA Securities and Williams Capital Group.
Proceeds will be used to repay outstanding debt under a commercial paper program and for general corporate purposes.
The beauty products company is based in New York City.
| Issuer: | Avon Products, Inc.
|
| Issue: | Senior unsecured notes
|
| Total amount: | $850 million, increased from $750 million
|
| Bookrunners: | J.P. Morgan Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
|
| Senior co-managers: | Banc of America Securities LLC and Citigroup Global Markets Inc.
|
| Junior co-managers: | Mitsubishi UFJ Securities, HSBC Securities, Goldman Sachs & Co., Santander Investments, BNP Paribas Securities
|
| Co-managers: | BBVA Securities, Williams Capital Group
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 25
|
| Settlement date: | March 2
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2014
|
| Coupon: | 5.625%
|
| Price: | 99.455
|
| Yield: | 5.752%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | Mid-to-high 300 bps
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | March 1, 2019
|
| Coupon: | 6.5%
|
| Price: | 98.746
|
| Yield: | 6.674%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | Mid-to-high 300 bps
|
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