Published on 10/10/2013 in the Prospect News High Yield Daily.
New Issue: L Brands prices $500 million 10-year bullet notes at par to yield 5 5/8%
By Paul A. Harris
Portland, Ore., Oct. 10 - L Brands, Inc. priced a $500 million issue of non-callable 10-year senior guaranteed notes (Ba1/BB+/BB+) at par to yield 5 5/8% on Thursday, according to a syndicate source.
The yield printed on top of yield talk.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets and J.P. Morgan Securities LLC were the joint bookrunners.
Proceeds will be used to repay the company's 5¼% senior notes due in November 2014 at maturity and for general corporate purposes including repayment of the company's revolving credit facility, funding seasonal working capital, share repurchases and dividends.
The issuer is a Columbus, Ohio-based women's apparel company.
| Issuer: | L Brands, Inc.
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2023
|
| Securities: | Senior guaranteed notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Senior co-managers: | HSBC Securities (USA) Inc., Wells Fargo Securities LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc., U.S. Bancorp Investments Inc., Williams Capital Group LP
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 293 basis points
|
| Call protection: | Non-callable
|
| Make-whole call: | Treasuries plus 50 bps
|
| Equity clawback: | 35% at 105.625 until Oct. 15, 2016
|
| Investor put option: | 101 upon change of control
|
| Trade date: | Oct. 10
|
| Settlement date: | Oct. 16
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 5 5/8% area
|
| Marketing: | Quick-to-market
|
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