THE WHAT? Coty has announced offers to purchase for cash up to US$100 million of its U.S. dollar-denominated notes, as well as up to €100M of its Euro-denominated notes.
THE DETAILS The note purchases will be done with available cash on hand and other sources of liquidity, including short term borrowings under its revolving credit facility and cash generated from operations.
According to Coty, the tender offers for the Notes will expire at 11:59 p.m., New York City time, on December 7, 2022, or any other date and time to which the Company extends the applicable tender offer.
THE WHY? The tender offer is a continuation of US$1.1 Billion reduction in debt over the last 15 months and continues Coty’s deleveraging agenda.
According to Coty the anticipated reduction in interest expense related to the debt securities would approximate US$11 million annually at current exchange rates.