By Devika Patel
Knoxville, Tenn., Feb. 7 – Estee Lauder Cos. Inc. offered further details about a $1.5 billion sale of senior notes (A2/A+) in an FWP filed Tuesday with the Securities and Exchange Commission. The offering priced in three tranches on Monday.
The company placed $500 million of 1.8% three-year notes at a spread of 40 basis points over Treasuries. These notes were priced at 99.986 to yield 1.805%.
A $500 million tranche of 3.15% 10-year notes priced with a Treasuries plus 75 bps spread. These notes were priced at 99.963 to yield 3.154%.
Estee Lauder sold $500 million of 4.15% 30-year notes at 110 bps over Treasuries. These notes were priced at 99.739 to yield 4.165%.
All three tranches priced on the tight side of talk.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were active bookrunners and BNP Paribas Securities Corp. and MUFG were passive bookrunners.
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
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| Description: | Senior notes
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active) BNP Paribas Securities Corp. and MUFG (passive)
|
| Co-managers: | ICBC Standard Bank plc, RBC Capital Markets Corp., SG Americas Securities LLC, U.S. Bancorp Investments Inc., BBVA Securities Inc. and Williams Capital Group LP
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
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| Amount: | $500 million
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | 1.8%
|
| Price: | 99.986
|
| Yield: | 1.805%
|
| Spread: | Treasuries plus 40 bps
|
| Price guidance: | Treasuries plus 45 bps area, plus or minus 5 bps
|
| Call feature: | At any time at the greater of par or a make-whole call at Treasuries plus 10 bps
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 3.15%
|
| Price: | 99.963
|
| Yield: | 3.154%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Dec. 15, 2026, then a par call
|
|
|
| 30-year notes
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| Amount: | $500 million
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| Maturity: | March 15, 2047
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| Coupon: | 4.15%
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| Price: | 99.739
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| Yield: | 4.165%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Sept. 15, 2046, then a par call
|
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