LB - In Place of Its Victoria's Secret Sale L Brands Offers $1.25B in Bonds to Fund Operations
After the COVID-19 pandemic dashed L Brands' (NYSE: LB) hopes of selling a controlling stake in its troubled Victoria's Secret brand, the company is floating a bond offering totaling $1.25 billion for cash to fund its business. The news comes several weeks after the company's latest quarterly report showed a $300 million loss and a 37% plunge in total revenue year over year.
L Brands had worked out a deal to sell Victoria's Secret to Sycamore Partners, a private equity firm, for approximately $525 million. However, when the coronavirus pandemic prompted the company to temporarily close its Victoria's Secret stores, Sycamore claimed this represented damage to the brand's value and a breach of the deal's terms. L Brands and Sycamore eventually agreed to cancel the acquisition.
Image source: L Brands.