Victoria’s Secret Markets New $500 Million Loan to Fund Bath & Body Spinoff

Victoria’s Secret is borrowing $500 million in the loan market to help fund the lingerie retailer’s separation from Bath & Body Works.

The new loan is due 2028, and is being marketed at 300 to 325 basis points above London interbank offered rate, according to a person with knowledge of the matter. The debt may be sold at 99 cents on the dollar, said the person, who asked not to be identified because the deal is private.

JPMorgan Chase & Co. is leading the sale. A call to discuss the transaction is set for 11 a.m. Tuesday in New York, and investor orders are due June 30, the person said.

After the spinoff is complete, the undergarment seller will be an independent, publicly traded company under the name Victoria’s Secret & Co., its parent L Brands Inc. said Monday. The split is expected to be completed in August.

Victoria’s Secret has seen a rebound in profits since the Covid-19 pandemic temporarily shuttered stores last year. After plans to sell a majority stake to Sycamore Partners at a $1.1 billion valuation fell through, the company restarted talks with other buyers, seeking a higher price, Bloomberg previously reported. The spinoff will help Victoria’s Secret and Bath & Body Works focus on growth and the changing retail environment, L Brands said in a statement last month.

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