Published on 5/9/2023 in the Prospect News Investment Grade Daily.
New Issue: Estee Lauder prices $2 billion of senior notes in three tranches
By Wendy Van Sickle
Columbus, Ohio, May 9 – Estee Lauder Cos. Inc. priced $2 billion of senior notes (A1/A+) in three tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
A $700 million tranche of 4.375% five-year notes priced at 99.897 to yield 4.398%, or a spread of 90 basis points over Treasuries.
The company sold $700 million of 4.65% 10-year notes at a Treasuries plus 115 bps spread. The notes priced at 99.897 to yield 4.663%.
A $600 million tranche of 5.15% 30-year notes priced at 99.455 to yield 5.186% and a spread of 135 bps over Treasuries.
BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the active bookrunners. BNP Paribas Securities Corp. and MUFG Securities Americas Inc. were passive bookrunners.
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. As of May 5, the company had $3.251 billion of short-term commercial paper outstanding, maturing at various times through October, at an average interest rate of 5.07%.
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: | $2 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active), BNP Paribas Securities Corp. and MUFG Securities Americas Inc. (passive)
|
| 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, Academy Securities, Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | U.S. Bank Trust NA
|
| Counsel to issuer: | Weil, Gotshal & Manges LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | May 9
|
| Settlement date: | May 12
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | May 15, 2028
|
| Coupon: | 4.375%
|
| Price: | 99.897
|
| Yield: | 4.398%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call before April 15, 2028 at Treasuries plus 15 bps; thereafter at par
|
| Cusip: | 29736RAS9
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | May 15, 2033
|
| Coupon: | 4.65%
|
| Price: | 99.897
|
| Yield: | 4.663%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call before Feb. 15, 2033 at Treasuries plus 20 bps; thereafter at par
|
| Cusip: | 29736RAT7
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | May 15, 2053
|
| Coupon: | 5.15%
|
| Price: | 99.455
|
| Yield: | 5.186%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before Nov. 15, 2052 at Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 29736RAU4
|
|
|
© 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.
