By Paul A. Harris
Portland, Ore., Aug. 4 – Avon Products, Inc. priced an upsized $500 million issue of six-year senior secured notes (Ba1/BB-) at par to yield 7 7/8% on Thursday, according to a syndicate source.
The issue size was increased from $400 million.
The deal was guided in the 8% area.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets Inc. and Goldman Sachs & Co. were joint bookrunners.
The New York-based manufacturer and marketer of beauty care products plans to use the proceeds, along with cash on hand, to fund tender offers for its 5¾% notes due 2018, its 4.2% notes due 2018, its 6½% notes due 2019 and its 4.6% notes due 2020.
The issuing entity is subsidiary Avon International Operations Inc.
| Issuer: | Avon International Operations, Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Aug. 15, 2022
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Senior co-managers: | HSBC, SunTrust Robinson Humphrey Inc., Santander
|
| Co-manager: | Williams Capital Group LP
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 669 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2019, then callable at a premium
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody's: Ba1
|
| S&P: BB-
|
| Distribution: | Rule 144A for life
|
| Price guidance: | 8% area
|
| Marketing: | Roadshow
|
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