Victoria’s Secret, as per media reports, is now seeking a loan of US $ 500 million to finance its separation from Bath & Body Works.
The loan is, reportedly, due in 2028 and according to sources from media, the lingerie retailer is presently marketing the loan privately to investors.
Earlier this week, the retailer had said that it could take up to US $ 1 billion in debt to fund a cash pay to L Brands for separation.
After negotiating with – and turning down – many buyers over the last couple of years, L Brands seems to have strengthened its efforts to spin off both the brands.
In this regard, L Brands had on Monday filed the necessary paper work with the Securities and Exchange Commission to spin off its reputed fashion brand Victoria’s Secret.
L Brand believes separation of Victoria’s Secret from Bath & Body Works would help both brands to focus on their unique business.
Meanwhile, regarding the plans of Victoria’s Secret to pay cash to L Brands for separation, the retailer said it would use the money to retire related debt and repurchase stock as part of the restructuring.