Avon plans $350 million add-on to 7 7/8% secured notes due 2022

By Wendy Van Sickle

Columbus, Ohio, June 19 – Avon Products, Inc. announced on Wednesday that a company subsidiary plans to sell a $350 million add-on to its senior secured notes due 2022.

The Rule 144A and Regulation S notes will be issued by the company’s wholly owned Avon International Operations, Inc. subsidiary.

The subsidiary issued $500 million of 7 7/8% senior secured notes due Aug. 15, 2022 on Aug. 15, 2016, according to Prospect News reports.

Proceeds from the new tap offering would be used along with cash on hand to fund a tender offer for any and all of the company’s $386,988,000 of outstanding 6.4% senior notes due 2020. The tender offer was announced on Wednesday.

The notes will be guaranteed by the company and each of the company's current and future wholly-owned subsidiaries that is a guarantor under Avon’s revolving credit agreement dated Feb. 12.

New York-based Avon manufactures and markets beauty care products such as cosmetics and fragrances and related fashion and home products including jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products.

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