Coty scores with euro secured

Beauty company Coty took out more of its bank debt with a secured bond this week, increasing its deal size from €500m to €700m and pushing through the 4% yield barrier to land the new issue at 3.875%. The Caa1/B- rated company has struggled to turn its business around and still has negative free cash flow, but a new management team, a new plan and a senior spot in the capital structure helped enthuse investors to buy the new bonds.