Coty prices tender offers for 6½%, 5% notes due 2026

By William Gullotti

Buffalo, N.Y., Nov. 22 – Coty Inc. announced the consideration payable in connection with the oversubscribed tender offers for its 6½% senior notes due 2026 (Cusips: 222070AB0, U2203CAA9) and 5% senior secured notes due 2026 (Cusips: 222070AE4, U2203CAE1) in a press release on Wednesday.

As previously reported, the company offered to purchase up to $150 million of the $473,017,000 outstanding 6½% notes and up to $250 million of the $900 million of outstanding 5% notes.

Both offers were oversubscribed as of 5 p.m. ET on Nov. 21, the early tender date, with holders tendering $241,182,000 principal amount of the 6½% notes and $523,855,000 principal amount of the 5% notes by the deadline.

Coty will pay a total consideration of $1,007.88 per $1,000 principal amount of 6½% notes and $975.22 per $1,000 principal amount of 5% notes, reflecting a reference yield of 4.734% for each series. Both offers were priced using the 3.75% U.S. Treasury note due April 15, 2026 plus a spread of 140 basis points.

For each series, the consideration will include an early tender premium of $30 per $1,000 principal amount of notes tendered by the early tender date and accrued interest to the early settlement date, which will be Nov. 30.

As previously reported, the company will accept $150 million principal amount of the 6½% notes using a proration factor of 62% and $250 million of the 5% notes using a proration factor of 48%.

Since the amount of notes validly tendered and not withdrawn by the early tender date exceeded the offer caps, the company does not expect to purchase any notes tendered after the early deadline.

The offers began Nov. 7 and were scheduled to expire at 5 p.m. ET on Dec. 7.

Coty plans to fund the purchase of the tendered notes with available cash on hand and other sources of liquidity. The company said the purpose of the tender offers is to reduce its total outstanding public debt.

BofA Securities, Inc. (888 292-0070, 980 683-5454, 980 388-4370 or debt_advisory@bofa.com) and J.P. Morgan Securities LLC (866 834-4666 or 212 834 4818) are the dealer managers.

D.F. King & Co., Inc. (800 290-6424, 212 269-5550 or coty@dfking.com) is the tender and information agent.

Coty is a New York-based beauty company.

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