Published on 5/5/2016 in the Prospect News Investment Grade Daily.
New Issue: Estee Lauder brings $600 million of senior notes in two tranches
By Cristal Cody
Eureka Springs, Ark., May 5 – Estee Lauder Cos. Inc. sold $600 million of senior notes (A2/A+) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $450 million of 1.7% five-year notes at 99.976 to yield 1.705%, or 50 basis points over Treasuries.
The company sold a $150 million tap of its 4.375% notes due June 15, 2045 at 110.847 to yield 3.753%, or 115 bps over Treasuries.
Estee Lauder originally sold the issue on June 1, 2015 in a $300 million tranche at 97.999 to yield 4.497%, or Treasuries plus 155 bps. The total outstanding is $450 million.
J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the bookrunners.
Proceeds from the offering will be used for general corporate purposes.
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: | $600 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc.
|
| Co-managers: | Goldman Sachs & Co., HSBC Securities (USA) Inc., Lloyds Securities Inc., RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., BBVA Securities Inc., Williams Capital Group, LP
|
| Pricing date: | May 5
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2021
|
| Amount: | $450 million
|
| Maturity: | May 10, 2021
|
| Coupon: | 1.7%
|
| Price: | 99.976
|
| Yield: | 1.705%
|
| Spread: | Treasuries plus 50 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps before April 10, 2021; par call thereafter
|
|
|
| Notes due 2045
|
| Amount: | $150 million reopening
|
| Maturity: | June 15, 2045
|
| Coupon: | 4.375%
|
| Price: | 110.847 plus accrued interest
|
| Yield: | 3.753%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps before Dec. 15, 2044; par call thereafter
|
| Total outstanding: | $450 million, including $300 million priced June 1, 2015 at 155 bps over Treasuries
|
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