THE WHAT? Coty has announced that it has launched an offering of €500 million aggregate principal amount of senior secured notes. The notes will be senior secured obligations of the issuers and guaranteed on a senior secured basis by each of Coty’s subsidiaries (HFC Prestige Products and HFC Prestige International).
THE DETAILS The interest rates and other key terms will be determined at the time of pricing. The collateral security will be released upon the notes achieving investment grade ratings from two out of the three ratings agencies.
THE WHY? Coty intends to use the net proceeds from the offering to repay a portion of the borrowings outstanding under its revolving credit facility, without a reduction in commitment.