L’Oréal Prices €1.75 Billion Triple-Tranche Bond with 2-Y 3M+20 bps, 3-Y 2.5%, 6-Y 2.875%
L’Oréal has priced a €1.75 billion bond across three tranches—€650 million two-year at Euribor 3M+20 bps, €500 million three-year at 2.5%, and €600 million six-year at 2.875%. Proceeds will partly finance an extra 10% stake in Galderma and notes are expected to be rated AA (Stable)/Aa1 (Stable).
1. Triple Tranche Bond Offering Details
L’Oréal has successfully priced a €1.75 billion bond issuance split into three tranches: a €650 million 2-year floating-rate note at Euribor 3M + 20 bps, a €500 million 3-year fixed-rate note at 2.5 %, and a €600 million 6-year fixed-rate note at 2.875 %. Settlement is scheduled for 12 January 2026, with admission to trading on Euronext Paris on the same date.
2. Use of Proceeds and Strategic Investment
Net proceeds will support general corporate purposes, notably financing part of L’Oréal’s additional 10 % stake acquisition in Galderma announced in December 2025, increasing its total participation to 20 %. This follows the initial 10 % stake acquired in early 2025 and reflects L’Oréal’s commitment to bolster its presence in dermatological and prescription skincare markets.
3. Credit Ratings and Syndicate
The notes are expected to receive ratings of AA (Stable) from S&P and Aa1 (Stable) from Moody’s. BNP Paribas, BofA Securities and Crédit Agricole CIB acted as Global Coordinators, while Commerzbank, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley and Santander served as Active Joint Bookrunners, illustrating broad institutional support for the transaction.