THE WHAT? L Brands has announced that its subsidiary Victoria’s Secret is offering the sale of US$500 million aggregate principal amount of senior notes due 2029.
THE DETAILS Subject to market and other conditions, the Notes will be senior unsecured obligations and will not be registered under the Securities Act of 1933 or the securities law of any state.
According to a press release, “The Notes will be senior unsecured obligations. Upon issuance, the Notes will not be guaranteed, however, from and after the date on which the proceeds of the offering are released from escrow, the Notes will be guaranteed by each of Victoria’s Secret’s existing and future wholly-owned domestic restricted subsidiaries that (i) guarantees its senior credit facilities, (ii) is a borrower under its ABL Facility or (iii) guarantees or incurs any other material debt.”
THE WHY? Soon to be ran as a separate business to L Brands, Victoria’s Secret is set to use the net proceeds from the offering of the Notes to fund a portion of cash payment to L Brands.
This amount will be after deductions for discounts and commissions to the initial purchasers of the Notes and estimated offering expenses.