Completion of a public offering of�$1.5 billion�in notes was achieved by Avon Products (NYSE: AVP ) at the same time it�entered into a�$1 billion�four-year unsecured revolving credit facility, the company said yesterday.
The credit facility replaces a previous�$1 billion�agreement, while the proceeds from the offering nets Avon�$1.48 billion�with maturities of 3, 7, 10, and 30 years. All totaled, the consumer products company will be able to repay�$1.9 billion�of debt, reduce leverage, and provide financial flexibility to support its turnaround activities.
Avon's executive vice president and CFO�Kimberly Ross said,�"Through this refinancing, we have achieved increased financial flexibility, which is critical to our ability to successfully execute�Avon's turnaround.�Our refinancing activities have improved our balance sheet, and we are pleased with the outcome."
Avon expects its interest expense will rise by about 10% this year compared to 2012 as it extends its maturity profile and decreases its reliance on floating rate debt. It will also be affected by one-time charges associated with make-whole premiums related to the prepayment of private placement notes of�$65 million�and�$25 million, should it prepay its Notes due in 2014.�
Avon sells women's beauty products and had nearly $11 billion in sales in 2012.
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