By Andrea Heisinger
New York, March 7 - Avon Products, Inc. priced a $1.5 billion offering of notes (Baa2/BBB-/BB+) in four tranches on Thursday, a market source said.
The offering had been announced on Tuesday.
A $250 million tranche of 2.375% three-year notes priced at 99.945 to yield 2.394% with a spread of Treasuries plus 200 basis points. Guidance was whispered in the 3% yield area.
There is a make-whole call at Treasuries plus 30 bps.
The $500 million of 4.6% seven-year notes sold at 99.851 to yield 4.625% with a spread of 325 bps over Treasuries. Pricing was at the low end of talk in the high 4% to 5% area.
A $500 million tranche of 5% 10-year notes priced at 99.03 to yield 5.125% with a spread of Treasuries plus 312.5 bps. The notes were sold in line with talk in the low to mid 5% area.
A $250 million tranche of 6.95% 30-year bonds sold at 99.711 to yield 6.973% with a spread of Treasuries plus 375 bps. The 30-year bonds were talked in the high 6% area.
The notes due 2020, 2023 and 2043 each have a make-whole call at 50 bps over Treasuries.
The 30-year bond was added "on inquiry," the source said.
The notes have a change-of-control put at 101%.
Bookrunners were BofA Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co.
Proceeds, along with cash on hand, will be used to repay debt and for general corporate purposes.
The New York-based beauty products company was last in the U.S. bond market with an $850 million sale in two tranches on Feb. 26, 2009.
| Issuer: | Avon Products, Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Change-of-control put: | 101%
|
| Trade date: | March 7
|
| Settlement date: | March 12
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BB+
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | March 15, 2016
|
| Coupon: | 2.375%
|
| Price: | 99.945
|
| Yield: | 2.394%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 3% area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 4.6%
|
| Price: | 99.851
|
| Yield: | 4.625%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | High 4% to 5% area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 5%
|
| Price: | 99.03
|
| Yield: | 5.125%
|
| Spread: | Treasuries plus 312.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | Low to mid 5% area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | March 15, 2043
|
| Coupon: | 6.95%
|
| Price: | 99.711
|
| Yield: | 6.973%
|
| Spread: | Treasuries plus 375 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | High 6% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
