Avon Products Inc. (AVP:US), the world’s largest door-to-door cosmetics seller, raised $1.5 billion in a four-part bond sale that included its first 30-year securities on record.
Avon sold equal $250 million portions of 6.95 percent debt due 2043 that yield 375 basis points more than similar-maturity Treasuries and 2.375 percent, three-year debentures that pay 200 basis points more than benchmarks, according to data compiled by Bloomberg. The company also issued equal $500 million portions of 4.6 percent, seven-year notes with a spread of 325 basis points and 5 percent, 10-year bonds that yield an extra 312.5.
Proceeds, along with cash on hand, will be used to repay debt and for general corporate purposes (AVP:US), the New York-based company said yesterday in a regulatory filing.
The new bonds were rated BBB- by Standard & Poor’s.
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