L Brands to redeem 8˝% notes due 2019 with new deal proceeds

New York, Jan. 8 – L Brands, Inc. plans to redeem its 8˝% senior notes due 2019 with proceeds from a $500 million offering of new senior notes due 2028, according to a 424B5 filing with the Securities and Exchange Commission.

The company issued a call to redeem the existing notes on Jan. 3.

The debt will be repaid on Feb. 2 at a price to be set using a make-whole formula based on a discount rate of Treasuries plus 50 basis points.

In addition to funds from the new notes, L Brands will also use cash on hand for the redemption.

The company originally issued $500 million of the 8˝% notes in 2009.

According to the prospectus, affiliates TD Securities (USA) LLC, one of the co-managers for the new notes, will receive more than 5% of the proceeds from the new offering because of their holdings of the existing notes. Consequently, the sale will be conducted under Finra rules relating to conflicts of interest.

L Brands is a Columbus, Ohio, retailer focused on women’s intimate and other apparel, personal care, beauty and home fragrance.

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