L Brands driving by with $1.25 billion five-year notes in secured and unsecured tranches

By Paul A. Harris

Portland, Ore., June 4 – L Brands, Inc. plans to price $1.25 billion of five-year notes in a two-part Thursday drive-by, according to market sources.

The Rule 144A and Regulation S deal includes $750 million of senior secured notes (Ba2), which come with two years of call protection, in the market with initial guidance in the 8% area.

The deal also includes $500 million of five-year senior unsecured bullet notes (B2) initially guided at 10½% to 10¾%.

J.P. Morgan Securities LLC is leading the offering.

The Columbus, Ohio-based operator of specialty retail stores plans to use the proceeds to repurchase or redeem all of its 2021 notes, as well as to fund approximately $200 million of retirement plan obligations, and for general corporate purposes, including near-term maturity debt refinancing.

L Brands' portfolio includes Bath & Body Works, Victoria’s Secret and PINK.

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