Avon Refinances Debt

Avon Products, Inc. has completed refinancing activities, including the completion of a public offering of $1.5 billion in notes. The company also entered into a $1 billion four-year unsecured Revolving Credit Facility Agreement, which replaces the previous $1 billion Revolving Credit Facility Agreement.

"Through this refinancing, we have achieved increased financial flexibility, which is critical to our ability to successfully execute Avon's turnaround," said Kimberly Ross, EVP & CFO, Avon Products, Inc."Our refinancing activities have improved our balance sheet, and we are pleased with the outcome."

The company expects interest expense in 2013 to increase approximately 10% as compared to 2012 as it extended its maturity profile and decreased reliance on floating rate debt. In addition, interest expense will be impacted by one-time charges associated with make-whole premiums related to the prepayment of the private placement notes of $65 million and $25 million if the company prepays its Notes due in 2014.