New Issue: L Brands prices $700 million 20-year bullet at par to yield 6¾% in Monday drive-by

By Paul A. Harris

Portland, Ore., June 13 – L Brands, Inc. priced a $700 million issue of 20-year non-callable senior notes (Ba1/BB+) at par to yield 6¾% on Monday, according to a market source.

The yield printed on top of yield talk.

BofA Merrill Lynch, Citigroup Global Markets and J.P. Morgan Securities LLC were the joint bookrunners for the public offer.

The Columbus, Ohio-based specialty retail company plans to use the proceeds to redeem its 6.9% notes due 2017 and for general corporate purposes.

L Brands is a Columbus, Ohio-based operator of specialty stores including Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel.

Issuer:	L Brands, Inc.
Amount:	$700 million
Maturity:	July 1, 2036
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Senior co-managers:	Mizuho Securities USA Inc., HSBC Securities (USA) Inc., Wells Fargo Securities,LLC
Co-managers:	KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA) Inc., US Bancorp Investments Inc., Fifth Third Securities Inc., PNC Capital Markets LLC, Santander Investment Securities Inc.
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Call:	Make-whole call at Treasuries plus 50 bps
Equity clawback:	35% at 106.75 until July 1, 2019
Trade date:	June 13
Settlement date:	June 16
Ratings:	Moody’s: Ba1
	Standard & Poor’s: BB+
Distribution:	SEC registered
Price talk:	6¾% area
Marketing:	Quick to market

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