Victoria’s Secret borrows $500 million for separation from Bath & Body Works

Premium lingerie giant Victoria’s Secret and Bath & Body Works have decided to part ways. However, things are not going to be so easy for the lingerie brand. The company is taking a $500 million loan that would help finance it for its separation from Bath & Body Works. The loan is due in 2028 and it is expected that the company would pay interest which is 300 to 325 basic points above Libor. Reports say that the sale is being monitored by JPMorgan Chase and the investor orders are expected to be due by June 30, 2021.

The recent reports have surfaced when parent company L Brands had announced about a possibility that the two brands could separate. However, the representatives for Victoria’s Secret and Bath & Body Works have not responded for comments. It was in May, 2021 when the quarterly numbers by the parent company had managed to beat the expectations of the analysts.

The company explained that the results were due to the customers paying the full price of the products. It also experienced strong momentum across the different divisions. In terms of its glamour side, Victoria’s Secret recently announced that it is all set to change its name and is also going to phase out its ‘Angels’ to reflect diverse experiences. This has also indicated that there is surely a lot going on in the company.

It has been reported that the new company name will be Victoria’s Secret & Co. and it will also include the Pink brand that will attract the younger customers including the teens and women in their 20s. The company has also announced a new marketing campaign that includes some of the celebrities like actress Priyanka Chopra Jonas, Megan Rapinoe and transgender model Valentina Sampaio. The Angel marketing will be phased out that had included some of the super models including Heidi Klum, Jasmine Tookes, Tyra Banks, Josephine Skriver and Gisele Bundchen.

Photo Credits: Pixabay

About the author