New Issue: L Brands prices $500 million 10-year bullet at par to yield 5¼%

By Paul A. Harris

Portland, Ore., Jan. 8 – L Brands, Inc. priced a $500 million issue of 10-year senior bullet notes (Ba1/BB+/BB+) at par to yield 5¼% on Monday, according to market sources.

The yield printed at the tight end of the 5¼% to 5½% yield talk. Initial guidance was in the low-to-mid 5% area.

The deal played to a considerable following. Not long before books closed orders were said to be $1.3 billion and growing, a trader said.

BofA Merrill Lynch, Citigroup Global Markets, HSBC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.

The Columbus, Ohio-based operator of specialty stores plans to use the proceeds to redeem its 8½% senior notes due June 15, 2019.

L Brands operates Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel.

Issuer:	L Brands, Inc.
Amount:	$500 million
Maturity:	Feb. 1, 2028
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC
Senior co-managers:	Barclays, ICBC Standard Bank Plc, KeyBanc Capital Markets Inc., Mizuho, U.S. Bancorp Investments Inc.
Co-managers:	Huntington Capital Markets, Scotia, Standard Chartered Bank, TD Securities
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Call protection:	Make-whole call at Treasuries plus 50 bps, otherwise non-callable
Equity clawback:	35% at 105.25 until Feb. 1, 2021
Trade date:	Jan. 8
Settlement date:	Jan. 23
Ratings:	Moody’s: Ba1
	S&P: BB+
	Fitch: BB+
Distribution:	SEC registered
Price talk:	5¼% to 5½%
Marketing:	Quick to market

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