Tiffany to issue $500 million in senior notes

New York – Tiffany &Co. plans to offer two series of senior notes, one due in 2024 and one due in 20144, for a total of $500 million. The initial purchasers of the notes are expected to be Merrill Lynch, Pierce, Fenner & Smith Inc., Goldman, Sachs & Co., BNY Mellon Capital Markets LLC, J.P. Morgan and Mizuho Securities.



Tiffany plans to use the proceeds to redeem several series of senior notes due between 2015-2019, and use any additional proceeds for general corporate purposes. The company expects a debt extinguishment charge, which will reduce fiscal 2014 net earnings by approximately $55 million - $70 million and net earnings per diluted share by approximately $0.43 to $0.53.



In addition, Tiffany is seeking commitments to replace its existing $275 million three-year unsecured revolving credit facility maturing in December 2014 and $275 million five-year unsecured revolving credit facility maturing December 2016 with a new $375 million four-year unsecured revolving credit facility and a new $375 million five-year unsecured revolving credit facility. The new credit facilities are expected to close after the closing of the notes offering.