Avon Sells First 30-Year Bonds Ever in $1.5 Billion Offering

Avon Products Inc. (AVP), 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, the New York-based company said yesterday in a regulatory filing.

Avon, with $3.2 billion of total debt, has $125 million of 4.625 percent bonds maturing in May, Bloomberg data show. The company had $1.2 billion of cash at year-end.

The new bonds were rated BBB- by Standard & Poor’s.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net