L Brands guides $400 million 20-year notes in high 6% to low 7% range

By Paul A. Harris

Portland, Ore., Oct. 27 – L Brands Inc. plans to price a $400 million offering of 20-year senior notes (Ba1/BB+) Tuesday following a late-morning conference call with investors, according to market sources.

The deal is being guided in a high 6% to low 7% yield range, according to a trader.

BofA Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights offer.

HSBC Bank and Wells Fargo Securities LLC are the senior co-managers. KeyBanc Capital Markets, MUFG, Mizuho, US Bancorp, Scotia Capital, Standard Chartered Bank, TD Securities and Huntington are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points, but are otherwise non-callable. They also feature a three-year 35% equity clawback.

The Columbus, Ohio-based specialty retailer plans to use the proceeds for general corporate purposes including capital expenditures, dividends and share repurchases.

The company’s brands include Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel.

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