By Paul A. Harris
Portland, Ore., Sept. 16 – L Brands, Inc. priced an upsized $1 billion issue of 10-year senior notes (B2/B+) at par to yield 6 5/8% in a Wednesday drive-by, according to market sources.
The issue size increased from $750 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the 7% area.
J.P. Morgan Securities LLC managed the sale.
The Columbus, Ohio-based company, which operates specialty stores featuring custom brands, plans to use the proceeds to fund tender offers for its 5 5/8% senior notes due 2022, its 5 5/8% senior notes due 2023, its 7.6% senior notes due 2037 and its 6.95% exchange debentures due 2033, with any remaining proceeds to be used to repay other outstanding debt.
| Issuer: | L Brands, Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Tenor: | 10 years
|
| Securities: | Senior notes
|
| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 6 5/8%
|
| Price: | Par
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| Yield: | 6 5/8%
|
| Call protection: | Five years
|
| Trade date: | Sept. 16
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Drive-by
|
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