By Cristal Cody
Tupelo, Miss., Feb. 6 – Estee Lauder Cos. Inc. priced $1.5 billion of senior notes (A2/A+) in three tranches on Monday, according to a market source.
The company placed $500 million of 1.8% three-year notes at a spread of 40 basis points over Treasuries.
A $500 million tranche of 3.15% 10-year notes priced with a Treasuries plus 75 bps spread.
Estee Lauder sold $500 million of 4.15% 30-year notes at 110 bps over Treasuries.
All three tranches priced on the tight side of talk.
BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were active bookrunners. BNP Paribas Securities Corp. and MUFG were passive bookrunners.
The notes initially will have a make-whole call and will later have a par call, according to a 424B5 filed with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes, including repaying commercial paper as it matures and refinancing the company’s $300 million 5.55% senior notes due May 15, 2017.
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: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active) BNP Paribas Securities Corp. and MUFG (passive)
|
| Trade date: | Feb. 6
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | 1.8%
|
| Spread: | Treasuries plus 40 bps
|
| Price guidance: | Treasuries plus 45 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2047
|
| Coupon: | 4.15%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
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