Coty Inc. Prices €500 Million of Senior Secured Notes

Coty Inc., one of the world's largest beauty companies, announced the pricing of €500 million in Senior Secured Notes due 2027. These notes, with an interest rate of 4.500%, are to be issued by Coty and its subsidiaries HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC. The company expects to close the offering on May 30, 2024, subject to customary closing conditions.

The notes will be guaranteed by Coty's subsidiaries and secured by the same collateral that backs the company's existing credit facilities and senior secured notes. This collateral will be released once the notes achieve investment-grade ratings from two out of three rating agencies.

Coty plans to use the net proceeds to redeem its existing 6.500% Senior Notes due 2026, repay part of its revolving credit facility borrowings, and cover associated offering expenses. The notes and related guarantees are not registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and non-U.S. persons outside the U.S.