Fitch rates Avon notes BB+

Fitch Ratings said it maintained the ratings on Avon Products, Inc. and Avon International Operations, Inc. on Rating Watch positive.

The agency also assigned a BB+ rating with recovery rating of RR1 to Avon International Capital plc's offering of $400 million of senior secured notes due 2022.

Avon International is a wholly owned subsidiary of Avon, Fitch said.

The proceeds from the secured note offering will be used to fund an announced tender offer for $387 million of Avon's senior unsecured notes due 2020, the agency said.

Given the amount of secured debt in the capital structure, Fitch said it downgraded the unsecured notes to B rating with recovery rating of RR5 from B+ with recovery rating of RR4.

The ratings remain on Rating Watch positive, reflecting Naturas Cosmeticos SA's prior announcement in May that it will acquire Avon in an all-stock transaction valued at $3.7 billion on an enterprise value basis, the agency said.

© 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.