Coty Inc. Announces Cash Tender Offers for Approximately $200 Million Outstanding Debt Securities
Coty Inc. (NYSE: COTY) has announced new tender offers to purchase up to
- Reduction of debt by
$1.1 billion over 15 months. - Expected annual interest expense savings of
$11 million . - Continues to strengthen the company's financial position.
- Potential adverse impact on credit ratings.
- The tender offers may not attract the minimum principal amount needed.
Tender Offer is a Continuation of
Continues Coty’s Deleveraging Agenda
Anticipated Reduction in Interest Expense related to these
|
Title of
|
Security
|
Principal Amount
|
Tender Offer
|
Early Tender
|
Total
|
USD Tender Offer |
|
CUSIPs: 222070AB0
US222070AB02 (144A)
|
|
|
|
|
Euro Tender Offer |
|
Common Codes: 180178872
|
|
|
|
|
(1) |
Per |
|
(2) | Does not include Accrued Interest (as defined below), which will also be payable as provided herein. |
|
(3) | Includes the Early Tender Premium (as defined below). |
|
The tender offers are being made upon the terms and subject to conditions described in the Offer to Purchase, dated
The tender offers for the Notes will expire at
In addition to the consideration set forth in the table above, all holders of Notes accepted for purchase in the tender offers will receive accrued and unpaid interest on such Notes from the last interest payment date with respect to such Notes to, but not including, the applicable settlement date (“Accrued Interest”).
Subject to the Notes Caps, and proration if applicable, holders of Notes validly tendered (and not validly withdrawn) prior to the Early Tender Date and accepted for purchase pursuant to the tender offers will receive the applicable tender offer consideration set forth in the table above (with respect to each series of Notes, the “Tender Offer Consideration”) plus the early tender offer premium for such series of Notes set forth in the table above (with respect to each series of Notes, the “Early Tender Premium” and, together with the applicable Tender Offer Consideration, the “Total Consideration”). Holders of Notes validly tendered (and not validly withdrawn) after the Early Tender Date, but before or at the Expiration Date, and accepted for purchase pursuant to the tender offers will receive the applicable Tender Offer Consideration, but not the Early Tender Premium. No tenders will be valid if submitted after the Expiration Date. Notes validly tendered prior to or at the Early Tender Date will be accepted for purchase in priority to other Notes validly tendered after the Early Tender Date.
The Company intends to fund the purchase of validly tendered and accepted Notes with available cash on hand and other sources of liquidity, including short term borrowings under its revolving credit facility and cash generated from operations. The purpose of the tender offers is to purchase a portion of the Notes, subject to the Notes Caps, in order to reduce the Company’s total outstanding public debt and interest expense. The tender offers could adversely impact the Company’s credit ratings but are expected to result in improved leverage and reduced interest expense while maintaining strong liquidity.
The tender offers will expire on the applicable Expiration Date. Except as set forth below, payment for the Notes that are validly tendered prior to or at the Expiration Date and that are accepted for purchase will be made on a date promptly following the Expiration Date, which is currently anticipated to be
Tendered Notes may be withdrawn prior to or at, but not after,
The tender offers are subject to the satisfaction or waiver of certain conditions which are specified in the Offer to Purchase. The tender offers are not conditioned on any minimum principal amount of Notes being tendered.
Information Relating to the Tender Offers
The Offer to Purchase is being distributed to holders beginning today.
|
|
|
|
|||||||||
Collect: +1 (212) 841-3059 |
Toll free: +1 (800) 558-3745 |
Collect: +1 (212) 261-7802 |
Collect: +1 (212) 940-1442 |
|||||||||
Toll-Free:+1 (888) 210-4358 |
|
Toll-Free: +1 (866) 807-6030 |
Toll-Free: +1 (855) 404-3636 |
|||||||||
|
|
|
|
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders with respect to, the Notes. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The tender offers are being made solely pursuant to the Offer to Purchase made available to holders of the Notes. None of the Company or its affiliates, their respective boards of directors, the dealer managers, the tender and information agent or the trustee with respect to any series of Notes is making any recommendation as to whether or not holders should tender or refrain from tendering all or any portion of their Notes in response to the tender offers. Holders are urged to evaluate carefully all information in the Offer to Purchase, consult their own investment and tax advisors and make their own decisions whether to tender Notes in the tender offers, and, if so, the principal amount of Notes to tender.
About
Forward Looking Statements
The statements contained in this press release include certain “forward-looking statements” within the meaning of the securities laws. These forward-looking statements reflect Coty’s current views with respect to, among other things, the proposed Tender Offers, the expected source of funds and the anticipated interest expense savings. These forward-looking statements are generally identified by words or phrases, such as “anticipate,” “are going to,” “estimate,” “plan,” “project,” “expect,” “believe,” “intend,” “foresee,” “forecast,” “will,” “may,” “should,” “outlook,” “continue,” “target,” “aim,” “potential” and similar words or phrases. These statements are based on certain assumptions and estimates that Coty considers reasonable and are not guarantees of Coty’s future performance, but are subject to a number of risks and uncertainties, many of which are beyond Coty’s control, which could cause actual events or results to differ materially from such statements, including the Company’s ability to consummate the Tender Offers on the terms and timing described herein, or at all, and other factors identified in “Risk Factors” included in Coty’s Annual Report on Form 10-K for the fiscal year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006245/en/
Investor Relations
212-389-7733
Olga_Levinzon@cotyinc.com
Media
+31 621 394495 917-754-8399
Antonia_Werther@cotyinc.com
Source: Coty
FAQ
What is Coty's new tender offer amount?
When do the tender offers for Coty expire?
What is the expected annual interest expense reduction for Coty?
What recent debt reduction has Coty achieved?