L Brands Inc. raised $1.25 billion in its first bond sale since losing a key deal with Sycamore Partners that would have given the private equity firm control of Victoria’s Secret.
The retailer is sold $750 million in secured notes at par to yield 6.875%, and $500 million in unsecured bonds at a yield of 9.375%. That compares with initial price talk of around 8% and 10.5%, according to a person familiar with the matter. The proceeds will be used to refinance debt and add cash to the balance sheet, the person said.
L Brands was able to sell $500 million of unsecured 10-year bonds last year at a yield of 7.75%, but it’s a much different company now. It’s been recalibrating after the abrupt cancellation of its earlier deal to sell a majority stake in Victoria’s Secret to Sycamore Partners. That deal, which fell apart last month, would have given the private equity firm control of the beleaguered lingerie chain.