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DEBT

6 Months Ended

Dec. 31, 2019

NOTE 6 – DEBT

In November 2019, the Company completed a public offering of $500 million aggregate principal amount of its 2.000% Senior Notes due December 1, 2024 (the “2024 Senior Notes”), $650 million aggregate principal amount of its 2.375% Senior Notes due December 1, 2029 (the “2029 Senior Notes”) and $650 million aggregate principal amount of its 3.125% Senior Notes due December 1, 2049 (the “2049 Senior Notes”). The Company used proceeds from this offering for general corporate purposes, including to fund the acquisition of Have & Be, and intends to use a portion of the proceeds to refinance its $500 million aggregate principal amount of 1.80% Senior Notes due February 7, 2020 when they become due.

These recently issued notes are summarized as follows:


						Unamortized		Debt		Semi-annual
						Debt		Issuance		interest
Notes	Issue Date	Price		Yield		Discount		Costs		payments
($ in millions)

2024 Senior Notes	November 2019	99.421	%	2.122	%	$	3	$	3	June 1/December 1
2029 Senior Notes ⁽¹⁾	November 2019	99.046		2.483			6		4	June 1/December 1
2049 Senior Notes	November 2019	98.769		3.189			8		7	June 1/December 1

(1)

In April and May 2019, in anticipation of the issuance of the 2029 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $500 million at a weighted-average all-in rate of 2.50%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a loss in OCI of $33 million that is being amortized to interest expense over the life of the 2029 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2029 Senior Notes will be 3.15% over the life of the debt.