Avon Products accepts $285.89 million of four series of notes so far

By Angela McDaniels

Tacoma, Wash., Aug. 15 – Avon Products, Inc. announce the early results of its tender offers for up to $650 million aggregate principal amount of its $250 million 5¾% notes due 2018, $250 million 4.2% notes due 2018, $350 million 6½% notes due 2019 and $500 million 6.35% notes due 2020, according to a company news release.

The notes are listed in order of acceptance priority level.

As of the early tender date, 5 p.m. ET on Aug. 12, holders had tendered $285,885,000 principal amount of notes, including $103,956,000 of the 5.75% notes, $71,286,000 of the 4.2% notes, $62,938,000 of the 6½% notes and $47,705,000 of the 6.35% notes.

Avon accepted for purchase all notes tendered by the early tender date, and the settlement date for these notes was Aug. 15.

In addition to the $650 million overall cap, the tender offers for the 6½% notes and the 6.35% notes are subject to maximum tender amounts of $250 million and $100 million, respectively.

The tender offers began Aug. 1 and will expire at 11:59 p.m. ET on Aug. 26.

For each $1,000 principal amount, the total consideration is $1,050 for the 5¾% notes, $1,020 for both the 4.2% notes and 6½% notes and $950 for the 6.35% notes.

Each total consideration includes a $30 early tender premium for notes tendered by the early tender date.

The company is also paying accrued interest up to but excluding the settlement date.

The tender offers are conditioned on the completion of a concurrent notes offering. The company sold $500 million of six-year senior secured notes at par to yield 7 7/8% on Aug. 4, and the issue settled Aug. 15.

None of the tender offers is conditioned on any minimum amount of notes being tendered or on the completion of the other tender offers.

The company noted that the 6.35% notes were issued with an interest rate of 4.6%. The coupon is subject to adjustment in the event of a change in credit ratings.

The dealer managers are BofA Merrill Lynch (888 292-0070 or 980 388-3646), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Goldman Sachs & Co. (800 828-3182 or 212 902-6941). The depositary and tender agent is Global Bondholder Services Corp. (212 430-3774, 866 470-3800 or contact@gbsc-usa.com).

Avon is a New York-based beauty products company.

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