L Brand's Victoria's Secret Seeks To Raise $500M Via Private Debt Offering

L Brands Inc LB has announced its subsidiary, Victoria’s Secret & Co, is offering to sell $500 million in aggregate principal amount of senior unsecured notes due 2029 in a private offering.
Victoria’s Secret will use the proceeds from the Notes offering, after deducting discounts and commissions to the initial purchasers of the Notes and estimated offering expenses, to fund a portion of a cash payment to L Brands.
Pending completion of the Separation proceeds from the offering of the Notes will be deposited into escrow to benefit the holders of the Notes.
America’s biggest lingerie retailer is preparing to become a standalone company, Victoria’s Secret & Co, spun off from parent L Brands.
L Brands’ cash and equivalents totaled $2.8 billion as of April 30, 2021.
Price action: LB shares closed higher by 0.34% at $71.21 on Tuesday.
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