Estee Lauder to price senior notes due 2034 via six bookrunners

By William Gullotti

Buffalo, N.Y., Feb. 12 – Estee Lauder Cos. Inc. plans to price fixed-rate senior notes due 2034 (A1/A), according to a 424B5 filing with the Securities and Exchange Commission.

The notes feature a make-whole call until some months before maturity, after which they will be callable at par. Noteholders will also be able to put the notes at 101 upon a change of control.

Moody’s Investors Service in a ratings news release anticipates the size of the offering will be $500 million.

BofA Securities, Inc., Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunning managers for the offering.

U.S. Bank Trust NA is the trustee.

Weil, Gotshal & Manges LLP serves as legal counsel for Estee Lauder. Davis Polk & Wardwell LLP is legal counsel for the underwriters.

Proceeds will be used for general corporate purposes, which may include funding a portion of the purchase price of the remaining interest in Deciem Beauty Group Inc., operating expenses, working capital, capital expenditures and redemption/repayment of debt. As of Feb. 9, 2024, the company had $1 billion of short-term commercial paper outstanding, due at various dates through March 2024, at an average interest rate of 5.4209%.

The skin care, makeup, fragrance and hair care product manufacturer is based in New York.

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