Coty Inc. launched a debt refinancing to increase its euro borrowings and add bonds to its all-loan capital structure, Reuters reported March 19, citing banking sources.
The refinancing is equivalent to $8 billion, according to Reuters, and includes outstanding debts of Coty and Galleria; the company puchased the latter for $12 billion from Procter & Gamble Co. in 2016, the news agency noted. According to Reuters, the refinancing includes a term loan A totaling $1.25 billion and $2.25 billion euro-denominated term loan A.
The refinancing also includes a $1 billion seven-year term loan B and $1.5 billion euro-denominated seven-year term loan B. In its own report on the term B loans, S&P Global unit Leveraged Commentary and Data said that Bank of America Merrill Lynch and J.P. Morgan are physical book runners on the deal, while Morgan Stanley, BNP Paribas, Credit Agricole CIB, Deutsche Bank, HSBC, UniCredit, ING, Mizuho, and RBC are passive book runners.
The Reuters report noted that prior to this refinancing, the company's term loan A totaled about $3.4 billion and €150 million, and term loan B tranches of roughly $1.59 billion and €1.16 billion. The financing also refinances around €1.15 billion of drawn outstandings from an approximately $3 billion revolving credit facility, according to Reuters.
The New York-based beauty maker is also raising bonds for the first time as part of its capital structure, Reuters said, citing unnamed sources. Coty is expected to raise the equivalent of around $2 billion in unsecured notes.
Leveraged Commentary and Data and S&P Global Market Intelligence are owned by S&P Global.