By Lisa Kerner
Charlotte, N.C., Nov. 29 - Avon Products, Inc. agreed to sell a total of $535 million of senior notes in three series in a private placement, according to an 8-K filed with the Securities and Exchange Commission.
The company, under a Nov. 23 note purchase agreement, will sell:
• $142 million of 2.6% senior notes, series A, due Nov. 23, 2015;
• $290 million of 4.03% senior notes, series B, due Nov. 23, 2020; and
• $103 million of 4.18% senior notes, series C, due Nov. 23, 2022.
Proceeds will be used to repay existing debt and for general corporate purposes.
The notes are unconditionally guaranteed by an Avon subsidiary.
Covenants contained in the agreement limit Avon's ability to merge with other entities, create new liens, incur additional debt or substantially change the general nature of its business. In addition, Avon may not permit its interest coverage ratio to be less than 4 to 1 as of the last day of each fiscal quarter.
The notes have a make-whole call at Treasuries plus 50 basis points. In the case of a partial payment, the company must redeem at least 5% of the total principal amount outstanding
Purchasers include Metropolitan Life Insurance Co., Northwestern Mutual Life Insurance Co., Great-West Life & Annuity Insurance Co., New York Life Insurance Co., Forethought Life Insurance Co., RGA Reinsurance Co., Nationwide Life Insurance Co., Massachusetts Mutual Life Insurance Co., MONY Life Insurance Co., United of Omaha Life Insurance Co., Ohio National Life Insurance Co., Transamerica Life Insurance Co., Transamerica Pacific Life Insurance Co., Connecticut General Life Insurance Co., Life Insurance Co. of North America, Farm Bureau Life Insurance Co., Equitrust Life Insurance Co., Union Central Life Insurance Co., Ameritas Life Insurance Co., and Acacia Life Insurance Co.
Avon is a beauty products company based in New York.
| Issuer: | Avon Products, Inc.
|
| Issue: | Senior notes
|
| Amount: | $535 million
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Distribution: | Private placement
|
| Closing: | Nov. 23
|
|
|
| Series A
|
| Amount: | $142 million
|
| Maturity: | Nov. 23, 2015
|
| Coupon: | 2.6%
|
|
|
| Series B
|
| Amount: | $290 million
|
| Maturity: | Nov. 23, 2020
|
| Coupon: | 4.03%
|
|
|
| Series C
|
| Amount: | $103 million
|
| Maturity: | Nov. 23, 2022
|
| Coupon: | 4.18%
|
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