Coty is scheduled to be repaid in full by the end of 2023 from cash generated from operations and revolving credit facility liquidity.
On July 19th, Coty and its two wholly-owned subsidiaries announced that they will issue $750 million of 6.25% senior secured notes (the “Notes”), which will mature in 2030.
The issuance is expected to be completed on July 26th, 2023, and Coty will receive a total revenue of $750 million from the Notes issuance.
Coty stated that the net proceeds from this Notes issuance will be used to fully repay the outstanding US dollar loans under its senior secured “Term B” credit facility, which is due in April 2025, and to proportionally repay the outstanding Euro loans under the same credit facility, as well as to pay related premiums, fees, and expenses.
The remaining portion of the “Term B” loans will be fully repaid by the end of 2023 using operating cash flows and revolving credit facilities.
It is worth noting that on July 18th, Coty announced its plan to sell a 3.6% stake in Wella Company for $150 million, and the cash proceeds from the divestiture will also be used to repay debt.
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