By Andrea Heisinger
New York, Oct. 30 - Estee Lauder Cos. Inc. priced $300 million 7.75% five-year senior notes Thursday to yield Treasuries plus 500 basis points, an informed source said.
The notes (A2/A/) priced at 99.932 to yield 7.767%.
There is a make-whole redemption option of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were J.P. Morgan Securities Inc. and Banc of America Securities LLC.
Proceeds will be used to repay outstanding commercial paper as it matures and for general corporate purposes. These may include repayment of debt, acquisitions, working capital, capital expenditures and repurchases of common stock. The company also may invest in short-term securities.
The cosmetic and beauty products company is based in New York City.
| Issuer: | The Estee Lauder Cos. Inc.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 1, 2013
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC
|
| Coupon: | 7.75%
|
| Price: | 99.932
|
| Yield: | 7.767%
|
| Spread: | Treasuries plus 500 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 30
|
| Settlement date: | Nov. 4
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
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