Published on 4/7/2020 in the Prospect News Investment Grade Daily.
New Issue: Estee Lauder prices $700 million 2.6% 10-year senior notes at 185 bps over Treasuries
By Cristal Cody
Tupelo, Miss., April 7 – Estee Lauder Cos. Inc. priced $700 million of 2.6% 10-year senior notes (A1/A+) on Tuesday at a spread of Treasuries plus 185 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were initially talked to price in the Treasuries plus 237.5 bps area.
The issue priced at 99.816 to yield 2.621%.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and MUFG were the bookrunners.
The proceeds will be used for general corporate purposes, including operating expenses, working capital, capital expenditures and redemption and repayment of short-term or long-term borrowings including outstanding commercial paper as it matures. Pending these uses, the company may initially invest in short-term marketable securities.
New York-based Estee Lauder is a manufacturer and marketer of skin care, makeup, fragrance and hair care products.
| Issuer: | Estee Lauder Cos. Inc.
|
| Amount: | $700 million
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| Maturity: | April 15, 2030
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| Description: | Senior notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and MUFG
|
| Co-managers: | Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ICBC Standard Bank plc, RBC Capital Markets, LLC, SG Americas Securities, LLC, U.S. Bancorp Investments, Inc., BBVA Securities Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Coupon: | 2.6%
|
| Price: | 99.816
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| Yield: | 2.621%
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| Spread: | Treasuries plus 185 bps
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| Call features: | Make-whole call before Jan. 15, 2030 at Treasuries plus 30 bps; thereafter at par
|
| Trade date: | April 7
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| Settlement date: | April 13
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| Ratings: | Moody’s: A1
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| S&P: A+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 237.5 bps area
|
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