THE WHAT? Coty is set to raise $500 million via an aggregate principle amount of senior secured notes, subject to market and customary conditions.
THE DETAILS Taking place via a private transaction, the notes will be secured by first priority liens on the same collateral that secures Coty’s obligations under its existing senior secured credit facilities and existing secured notes.
According to Coty, the notes and the guarantees will be in equal right of payment, with all of Coty’s and the guarantors’ ‘respective existing and future senior indebtedness.’
THE WHAT? Coty intends to use the net proceeds from the offering to repay a portion of its outstanding term loans under its existing credit facilities and to pay any related premiums, fees and expenses.