New Issue: L Brands upsizes to $1 billion, prices 20-year notes at par to yield 6 7/8%

By Paul A. Harris

Portland, Ore., Oct. 27 – L Brands Inc. priced a massively upsized $1 billion issue of 20-year senior bullet notes (Ba1/BB+) at par to yield 6 7/8% on Tuesday, according to a syndicate source.

The quick-to-market deal was increased in size from $400 million.

The yield printed on top of yield talk and at the tight end of early guidance set in the high 6% to low 7% yield range, according to market sources.

BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets and J.P. Morgan Securities LLC were the joint bookrunners.

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.

Issuer:	L Brands, Inc.
Amount:	$1 billion, increased from $400 million
Maturity:	Nov. 1, 2035
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	Citigroup Global Markets, J.P. Morgan Securities LLC
Senior co-managers:	HSBC Bank, Wells Fargo Securities LLC
Co-managers:	KeyBanc Capital Markets, MUFG, Mizuho, US Bancorp, Scotia Capital, Standard Chartered Bank, TD Securities, Huntington
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	403 bps
Call protection:	Make-whole call at Treasuries plus 50 bps, otherwise non-callable
Trade date:	Oct. 27
Settlement date:	Oct. 30
Rating:	Moody’s: Ba1
	Standard & Poor’s: BB+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk;	6 7/8% area
Marketing:	Quick to market

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