L Brands to price $500 million 10-year notes in Wednesday drive-by; whisper is mid-to-high 7% area

By Paul A. Harris

Portland, Ore., June 5 – L Brands, Inc. plans to price a $500 million offering of 10-year senior notes (existing ratings Ba1/BB) in a quick-to-market Wednesday trade following a late-morning conference call with investors, according to market sources.

The deal will price on the investment-grade syndicate desk, an informed source said, adding that initial price talk is in the mid-to-high 7% area.

Citigroup Global Markets Inc., BofA Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are joint bookrunners for the public offering.

The notes come with five years of call protection.

The Columbus, Ohio, specialty store chain operator plans to use the proceeds, together with approximately $300 million of cash on hand, to fund tender offers for any and all of its $338.38 million outstanding of 7% notes due 2020 and up to $449 million of its 6 5/8% senior notes due 2021, its 5 5/8% senior notes due 2022 and its 5 5/8% senior notes due 2023. Including the tender premiums, the amount of the purchases could total up to $800 million.

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

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