Commentary & Deal Flow

Douglas/Kirk Beauty (DOUGR) EUR1.78bn (up from EUR1.63bn and from EUR1.3bn) 144A/Reg S notes 2-part. Via GS/DB/UniCredit jt glocos/BNP/UBS jt books. No reg rights. List ISE. NY law. Settles 04/09 (T+9 per US business day convention).

- Douglas GMBH EUR1.305bn (down from EUR1.33bn, up from EUR1bn) sr sec notes due 04/08/26 (5y). NC2 (MWC B+50bp), then at 103.00, 101.500, 100. Equity claw: 2y 40% at 106.00. Special call: 10% per year the first 2 years at 103. B3/B-/B (stable/negative/stable). Interest pays April 15 and Oct 15, starting 10/15/21. Reg S ISIN: XS2326497802. IPT: 5.50% at par. Final px talk: 6.00% at par. Priced: 6.0% at 100. +670bp vs DBR 0.50% 02/15/26.

- Kirk Beauty SUN GmbH (holdco) EUR475m (up from EUR300m) sr PIK notes due 10/01/26 (5.5y). NC2.5 (MWC B+50bp), then at 104.125, 102.063, 100. Equity claw: 2y 40% at 108.25. Caa2/CCC/CCC (stable/negative/stable). Interest pays April 15 and Oct 15, starting 10/15/2021. Pays all cash or PIK (PIK steps up 75bp) at the issuer's option. Reg S ISIN: XS2326505240. IPT: 9.00% at par. Final px talk: 9.00% at par. Priced: 8.25% cash / 9.00% PIK coupon at 100, 9.00% YTM assuming PIK interest for the life of the notes. +967bp vs DBR 0.00% 08/15/26. 

Did investor call at 2pm UKT 03/18. Small group meeting 03/19-24. Books closed at 12pm UKT today. UOP: along with a new credit facility for Parfurmerie Douglas International GmbH, consisting of EUR600m (down from EUR750m, and down from EUR1.08bn) sr sec term loan B and EUR170m revolver (lender call 03/16 via GS/DB/Unicredit/UBS joint books), to fund a recap, including redeeming Douglas GmbH EUR300m 6.25% sr sec notes due 07/15/22 (callable at 100) and Kirk Beauty One GmbH EUR335m 8.75% sr notes due 07/15/23 (callable at 100), repay its existing sr sec credit facilities (EUR1.67bn term loan B and EUR200m drawn on its revolver), and EUR99m cash on the B/S. The equity sponsor CVC is also contributing EUR220m in equity. Biz: European specialist retailer of beauty care and lifestyle products in online shops, the beauty marketplace and 2,400 stores. HQ: Dusseldorf, Germany.