Victoria’s Secret talks $500 million eight-year notes at 4¾%-5%; pricing Wednesday

By Paul A. Harris

Portland, Ore., June 30 – Victoria’s Secret & Co. talked its $500 million offering of eight-year senior notes (B1/B+) to yield 4¾% to 5%, according to market sources.

Official talk comes tight to initial guidance in the 5% area.

The deal, which was heard to have been almost fully subscribed by the process of reverse inquiry, is expected to price later on Wednesday. That would represent an acceleration of timing which previously had the offering remaining in the market until Thursday.

J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S offering.

The notes come with three years of call protection.

The Columbus, Ohio-based specialty fashion retailer is a subsidiary of L Brands, Inc., which is spinning Victoria's Secret off to shareholders.

Proceeds from the notes will be used to fund a portion of the cash payment to L Brands with respect to the spinoff.

Prior to the closing of the spinoff, the proceeds of the notes will be placed in escrow.

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