Victoria’s Secret Markets – New $ 500 Million Loan to Fund Additional Bath & Body Funding



(Bloomberg) – Victoria’s Secret borrows $ 500 million from the marketplace to help fund a spin-off of a lingerie retailer from Bath & Body Works.

The new loan has a maturity date of 2028 and is being sold at rates ranging from 300 to 325 basis points above the proposed London interbank rate, according to a knowledgeable person. The debt could be sold for 99 cents a dollar, said the man, who asked not to be identified because the deal is private.

JPMorgan Chase & Co. leads sales. The call to discuss the deal is scheduled for 11 a.m. Tuesday morning in New York, and investor orders are due June 30, the person said.

Following the spin-off, the lingerie retailer will be an independent public company called Victoria’s Secret & Co., its parent company, L Brands Inc., said Monday. The split is expected to be completed in August.

Victoria’s Secret profits soared after the Covid-19 pandemic temporarily closed stores last year. As Bloomberg previously reported, after plans to sell a controlling stake in Sycamore Partners at an estimated $ 1.1 billion were dashed, the company resumed negotiations with other buyers seeking a higher price. The additional income will help Victoria’s Secret and Bath & Body Works focus on growing and changing the retail environment, L Brands said in a statement last month.

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