Natura Cosméticos S.A. Announces Consent Solicitation for the Avon Products, Inc. 6.950% Notes due 2043

SÃO PAULO, Sept. 25, 2019 /PRNewswire/ — Natura Cosméticos S.A. (“Natura” or the “Company“) announced today that consents (the “Consents“) are being solicited (the “Consent Solicitation“) on behalf of Avon Products, Inc. (“Avon” or the “Issuer“) from holders (the “Holders“) of Avon’s outstanding 6.950% Notes due 2043 (the “Notes“) as of 5:00 p.m. New York City time, on September 24, 2019 (the “Record Date“) to effect an amendment to the indenture governing the Notes (the “Indenture“), as described below, upon the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated September 25, 2019 (as may be amended or supplemented from time to time, the “Consent Solicitation Statement“). The Consent Solicitation will expire at 5:00 p.m. New York City time, on October 1, 2019 (such time and date, as the same may be extended from time to time, the “Expiration Date“).

Certain details regarding the Notes and the Consent Solicitation are set forth in the table below.

Title of Security

CUSIP Nos.

Outstanding Principal

Amount

Consent Fee(1)





6.950% Notes due 2043

054303 AZ5

U.S.$243,847,000

U.S.$12.50





(1) The Consent Fee (as defined in the Consent Solicitation Statement) for the Consent Solicitation is an amount, per U.S.$1,000 aggregate principal amount of the Notes for which a Holder thereof has delivered valid and unrevoked Consents to the Proposed COC Amendments (on or prior to the Expiration Date).  No accrued interest will be paid in connection with the Consent Solicitation.  Holders who validly deliver (and do not validly revoke) their Consents on or prior to the Expiration Date shall receive the Consent Fee, subject to the terms and conditions set forth in the Consent Solicitation Statement.

On May 22, 2019, the Company entered into an Agreement and Plan of Mergers (the “Merger Agreement“) with the Issuer, Natura Holding S.A. (currently known as “Natura &Co Holding S.A.”), a corporation (sociedade anônima) incorporated under the laws of the Federative Republic of Brazil (“Natura &Co Holding“), Nectarine Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Natura &Co Holding (“Merger Sub I“) and Nectarine Merger Sub II, Inc., a Delaware corporation and a direct wholly owned subsidiary of Merger Sub I (“Merger Sub II” and, together with Merger Sub I, the “Merger Subs“), pursuant to which the Issuer will become a wholly owned direct subsidiary of Natura &Co Holding (the “Transaction“). If the Transaction is completed, the Issuer and the Company will each become wholly owned subsidiaries of Natura &Co Holding. The completion of the Transaction is subject to the satisfaction of certain customary closing conditions.  Based on the number of common shares of the Company (the “Natura Shares“) and securities convertible into Natura Shares and the number of shares of common stock, par value U.S.$0.25 per share, of the Issuer (the “Avon Common Shares“) and securities convertible into Avon Common Shares, in each case issued and outstanding as of May 22, 2019, it is anticipated that, upon closing of the Transaction, the former shareholders of the Issuer will own approximately 24% of Natura &Co Holding on a fully diluted basis and the former shareholders of the Company will own approximately 76% of Natura &Co Holding on a fully diluted basis.  It is expected that the shares of Natura &Co Holding will be listed on the São Paulo Stock Exchange and that Natura &Co Holding American depositary shares will be listed on the New York Stock Exchange following the completion of the Transaction.

The effectiveness of the Proposed COC Amendments (as defined below) is not a condition to the consummation of the Transaction or the other transactions contemplated by the Merger Agreement.

The Consents are being solicited to: (a) amend the defined term “Change of Control” in the Indenture to provide that the Transaction will not constitute a Change of Control under the Indenture and (b) add to, amend, supplement or change certain other defined terms contained in the Indenture related to the foregoing (collectively, the “Proposed COC Amendments“). Except for the foregoing, the Proposed COC Amendments do not include any other changes to the Indenture.

The obligation to pay (or cause to be paid) the Consent Fee for valid and unrevoked Consents to the Proposed COC Amendments is subject to and conditioned upon (i) the receipt of the Requisite Consents (as defined below) on or prior to the earlier of the Consent Time (as defined below) and the Expiration Date and (ii) the absence of any law or regulation, and the absence of any injunction or action or other proceeding (pending or threatened), that (in the case of any action or proceeding if adversely determined) would make unlawful or invalid or enjoin or delay the implementation of the Proposed COC Amendments, the entering into of the Supplemental Indenture (as defined below) or the payment of the Consent Fee to the Holders of the Notes or that would question the legality or validity thereof (collectively, the “Consent Conditions“).

Revocation of Consents may be made at any time prior to the earlier of (i) the Consent Time and (ii) 5:00 P.M. New York City Time, on October 1, 2019 (the “Revocation Date“), but only by the Holder on the Record Date that previously granted such Consent (or a duly designated Proxy of such Holder.  Subject to applicable law, the Company may, in its sole discretion, extend the Expiration Date with or without extending the Revocation Date. 

If the Holders of at least a majority of the aggregate outstanding principal amount of the Notes deliver valid and unrevoked Consents to the Proposed COC Amendments (the “Requisite Consents“), the Issuer and, upon receipt of an officers’ certificate and an opinion of counsel, the trustee shall execute a supplemental indenture (the “Supplemental Indenture“) to the Indenture effecting the Proposed COC Amendments.  The time and date on which the Supplemental Indenture is executed is hereinafter referred to as the “Consent Time“. Consents to the Proposed COC Amendments may not be revoked at any time after the Consent Time, even if the Revocation Date is later than the Consent Time.  Although the Supplemental Indenture and the related Proposed COC Amendments will become effective immediately upon execution at the Consent Time, the Proposed COC Amendments will not be operative until the Consent Fee is paid to DTC for the benefit of the applicable Holders on the Settlement Date (as defined below). The Company expects to pay, or cause to be paid, the Consent Fee to DTC for the benefit of the applicable Holders within two business days of the Expiration Date and the satisfaction or waiver of all Consent Conditions (the “Settlement Date“). Once the Supplemental Indenture is effective, any Consents given may not be revoked. If the Consent Conditions are not satisfied or waived, no Consent Fee with respect to the Notes will be paid to any Holder thereof.

The Consent Solicitation is being made solely by the Consent Solicitation Statement and on the terms and subject to the conditions set forth in the Consent Solicitation Statement. The Company may, in its sole discretion, terminate, extend or amend the Consent Solicitation at any time as described in the Consent Solicitation Statement. This announcement is for information purposes only and is neither an offer to sell nor a solicitation of an offer to buy any security and is not a solicitation of consents with respect to the Proposed COC Amendments or any securities. The Consent Solicitation is not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable state or foreign securities or blue sky laws.

Banco Bradesco BBI S.A. (“Bradesco BBI”), Citigroup Global Markets Inc. (“Citi”) and Itau BBA USA Securities, Inc. (“Itau BBA”) are acting as the Solicitation Agents for the Consent Solicitation. D.F. King & Co., Inc. will act as the Information and Tabulation Agent for the Consent Solicitation. Questions or requests for assistance related to the Consent Solicitation or for additional copies of the Consent Solicitation Statement may be directed to Bradesco BBI at +1 (646) 432-6643 (collect), Citi at +1 (212) 723-6106 (banks and brokers) and +1 (800) 558-3745 (all others, toll free), Itau BBA at +1 (888) 770-4828 (toll free) and +1 (212) 710-6749 (collect), or to D.F. King & Co., Inc. at +1 (212) 269-5550 (banks and brokers), +1 (800) 467-0821 (all others, toll free) or email at avon@dfking.com. The Consent Solicitation Statement is available at: www.dfking.com/avon. Holders may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation. Holders are urged to review the Consent Solicitation Statement for the detailed terms of the Consent Solicitation and the procedures for consenting to the Proposed COC Amendments.

About the Company and the Issuer

Natura is Brazil’s largest multinational cosmetics, hygiene and beauty company in terms of market share, as of December 2018, according to Euromonitor International, with operations in Asia, Europe, North America, Oceania, and South America, operating under the Natura, The Body Shop and Aesop brands. To learn more, please visit the Company’s website at https://natu.infoinvest.com.br/en.

For 130 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Millions of independent Representatives across the world sell iconic Avon brands such as Avon Color and ANEW through their social networks, building their own beauty businesses on a full- or part-time basis. Avon supports women’s empowerment, entrepreneurship and well-being and has donated over $1 billion to women’s causes through Avon and the Avon Foundation. To learn more, please visit the Issuer’s website at investor.avonworldwide.com/.

Forward-Looking Statements

Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the consummation of the Transaction, the Consent Solicitation, including the timing thereof, the Proposed COC Amendments and the execution of the Supplemental Indenture. These statements are based on certain assumptions made by the Company and the Issuer based on their management’s respective experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company and the Issuer, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks set forth in reports filed by the Company with the Brazilian Securities Commission (Comissão de Valores Mobiliários) and by the Issuer with the U.S. Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and neither the Company nor the Issuer intends to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Natura Cosméticos S.A.

Media Inquiries:
Marcelo Behar, Corporate Affairs Officer Natura &Co 
natura@brunswickgroup.com

Investor Relations:
Viviane Behar de Castro, Investor Relations Director, Natura &Co 
RI@natura.net

SOURCE Natura Cosméticos S.A

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