|TEV||73,003||TEV/EBIT||28||TTM 2019-09-30, in MM, except price, ratios|
|Item 1.01 Entry Into A Material Definitive Agreement.|
|Item 8.01 Other Events.|
|Item 9.01 Financial Statements and Exhibits.|
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 1.01 Entry into a Material Definitive Agreement.
On April 13, 2020, The Estée Lauder Companies Inc. (the “Company”) completed a public offering of $700,000,000 aggregate principal amount of its 2.600% Senior Notes due 2030 (the “Notes”). The Notes are governed by the Indenture, dated as of November 5, 1999 (the “Indenture”), between the Company and U.S. Bank Trust National Association, as successor in interest to State Street Bank and Trust Company, as trustee.
The Notes mature on April 15, 2030. Interest on the Notes is payable on April 15 and October 15 of each year, commencing October 15, 2020 and accrues from April 13, 2020. The Company may redeem the Notes, in whole or in part, at its option at any time prior to January 15, 2030 (three months prior to the maturity date of the Notes) by paying a make-whole premium, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, the Company may redeem the Notes, in whole or in part, at its option at any time on or after January 15, 2030 (three months prior to the maturity date of the Notes) at 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. The Notes are senior unsecured obligations of the Company and rank equally with all of its other senior unsecured indebtedness.
The Notes are subject to certain customary covenants, including limitations on the Company’s ability to merge, consolidate or sell assets; limitations on the ability of the Company and certain of its subsidiaries to secure indebtedness with liens; and limitations on sale and leaseback transactions by the Company and certain of its subsidiaries. In addition, upon the occurrence of a Change of Control Repurchase Event (as described in the officers’ certificate setting forth the terms of the Notes (the “Officers’ Certificate”)), the Company will be required to make an offer to repurchase the Notes at 101% of the aggregate principal amount.
The foregoing description of the Indenture and the Notes does not purport to be complete and is qualified in its entirety by reference to the full text of the Indenture, which is filed as Exhibit 4 to Amendment No. 1 to the Company’s Registration Statement on Form S-3 (No. 333-85947) filed on November 5, 1999; and to the full text of the Officers’ Certificate and the form of global note representing the Notes, which are filed as Exhibits 4.1 and 4.2 hereto, respectively. Each of the foregoing documents is incorporated by reference herein.
Item 8.01 Other Events.
On April 7, 2020, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as representatives of the several underwriters identified on Schedule II thereto (collectively, the “Underwriters”), to sell $700,000,000 aggregate principal amount of the Notes under the Company’s automatic shelf registration statement on Form S-3 (No. 333-225076) (the “Registration Statement”) filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”), on May 21, 2018. The Company sold the Notes to the Underwriters at a price of 99.366% of the principal amount thereof, and the Underwriters offered the Notes to the public at a price of 99.816% of the principal amount thereof.
The Underwriting Agreement contains customary representations, warranties, conditions to closing, indemnification and obligations of the parties. The Company has also agreed to indemnify the Underwriters against certain liabilities, including civil liabilities under the Securities Act, or to contribute to payments that the Underwriters may be required to make in respect of those liabilities.
The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is filed as Exhibit 1.1 hereto.
Certain of the Underwriters perform and have performed commercial and investment banking and advisory services for the Company from time to time for which they receive and have received customary fees and expenses. The Underwriters may, from time to time, engage in transactions with and perform services for the Company in the ordinary course of their business for which they will receive fees and expenses.
On April 8, 2020, the Company announced the offering and pricing of the Notes. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
In connection with the offering of the Notes, the Company is filing as Exhibit 5.1 hereto an opinion of counsel addressing the validity of the Notes. Such opinion is incorporated by reference into the Registration Statement.
Item 9.01 Financial Statements and Exhibits.
|1.1||Underwriting Agreement, dated April 7, 2020, among The Estée Lauder Companies Inc. and BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein.|
|4.1||Officers’ Certificate, dated April 13, 2020, defining certain terms of the 2.600% Senior Notes due 2030.|
|4.2||Form of Global Note for the 2.600% Senior Notes due 2030 (included as Exhibit A in Exhibit 4.1).|
|5.1||Opinion of Weil, Gotshal & Manges LLP.|
|23.1||Consent of Weil, Gotshal & Manges LLP (included in Exhibit 5.1).|
|99.1||Press Release issued by the Company, dated April 8, 2020.|
|104||Cover Page Interactive Data File (embedded within the Inline XBRL document).|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|THE ESTÉE LAUDER COMPANIES INC.|
|Date: April 13, 2020|
|By:||/s/ Tracey T. Travis|
|Tracey T. Travis|
|Executive Vice President and Chief Financial Officer|