THE WHAT? L Brands is set to raise US$1.25 billion in a bond sale that will provide a much-needed cash injection after Sycamore Partners pulled out of a deal to purchase its Victoria’s Secret brand.
THE DETAILS The owner of Bath & Body Works has announced the pricing of its offer to sell US$750 million aggregate principal amount of 6.875 percent senior secured notes due 2025 and US$500 million aggregate principal amount of 9.375 percent senior notes due 2025 in a private placement offering to eligible purchases.
The offering is expected to close on June 18, subject to customary closing conditions.
THE WHY? The company intends to use the net proceeds to repurchase of redeem its outstanding 2021 notes, to refinance other debt and ease cash flow.