Coty Inc. Announces Pricing of $900 Million Senior Notes

In a significant move to bolster its financial position, Coty Inc. (NYSE: COTY) has priced a substantial offering of $900 million in senior notes. This strategic decision, announced on October 7, 2025, is aimed at refinancing existing debt and optimizing the company's capital structure.

Coty's offering consists of 5.600% Senior Notes due in 2031, which will be issued by Coty and its wholly-owned subsidiaries, HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC. Collectively referred to as the "Issuers," these entities are set to close the offering on or around October 15, 2025, pending customary closing conditions.

For the duration that the senior notes maintain investment grade ratings from at least two of three major ratings agencies, they will be classified as senior unsecured obligations. Notably, these notes will not be guaranteed by any of Coty's subsidiaries. Should the investment grade ratings drop below this threshold, the notes will receive full and unconditional guarantees on a senior secured basis from all of Coty’s subsidiaries, excluding the Co-Issuers, and will be secured by first-priority liens on collateral that also backs Coty's existing senior secured credit facilities.

The proceeds from this $900 million offering, combined with cash on hand, are earmarked for strategic financial maneuvers. Specifically, Coty intends to redeem all outstanding 5.000% senior secured notes due in 2026, as well as a portion of its 3.875% senior secured notes, both at par plus any accrued and unpaid interest. This redemption strategy will allow Coty to streamline its debt obligations and potentially reduce its interest expense. In addition, cash on hand will cover the costs associated with the offering.

The offering of the notes is structured to comply with regulatory frameworks, being available only to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Furthermore, non-U.S. persons outside the United States may also participate in the offering under Regulation S. It is important to note that these notes have not been registered under the Securities Act or any state securities laws, which means they cannot be offered or sold in the U.S. without proper registration or exemption.

Coty Inc.'s recent announcement of the $900 million senior notes offering marks a pivotal step in its ongoing efforts to optimize its capital structure and reduce debt costs. With a robust portfolio of iconic beauty brands and a commitment to innovation, the company is strategically positioned to enhance its financial standing while continuing to serve consumers globally. As the closing date for the offering approaches, stakeholders will be keenly observing how these moves reshape Coty's financial landscape.

Founded in Paris in 1904, Coty has grown into one of the world's largest beauty companies, with a diverse portfolio that spans fragrance, color cosmetics, and skin and body care. Operating in over 120 countries and territories, Coty empowers consumers to express their individual visions of beauty while remaining committed to sustainability and environmental stewardship.