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DEBT (Tables)

3 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of debt

The Company’s debt balances consisted of the following as of September 30, 2021 and June 30, 2021, respectively:

			September 30, 2021						June 30, 2021
Short-term debt			$	—					$	—
Senior Secured Notes
2026 Dollar Senior Secured Notes due April 2026			900.0						900.0
2026 Euro Senior Secured Notes due April 2026			812.2						833.3
2018 Coty Credit Agreement
2018 Coty Revolving Credit Facility due April 2023			590.0						670.0
2021 Coty Revolving Credit Facility due April 2025			—						—
2018 Coty Term A Facility due April 2023			111.1						114.0
2018 Coty Term B Facility due April 2025			1,440.3						1,461.7
Senior Unsecured Notes
2026 Dollar Notes due April 2026			550.0						550.0
2023 Euro Notes due April 2023			638.2						654.7
2026 Euro Notes due April 2026			290.1						297.6
Other long-term debt and capital lease obligations			0.1						0.2
Total debt			5,332.0						5,481.5
Less: Short-term debt and current portion of long-term debt			(24.0)						(24.2)
Total Long-term debt			5,308.0						5,457.3
Less: Unamortized financing fees			(46.9)						(51.7)
Less: Discount on long-term debt			(11.1)						(4.6)
Total Long-term debt, net			$	5,250.0					$	5,401.0

Debt instrument redemption

At any time on or after April 15, 2023, the Company may redeem some or all of the 2026 Dollar Senior Secured Notes and 2026 Euro Senior Secured Notes at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below:

			Price
Year			2026 Dollar Senior Secured Notes						2026 Euro Senior Secured Notes
2023			102.5000%						101.9380%
2024			101.2500%						100.9690%
2025 and thereafter			100.0000%						100.0000%

Summary total net leverage ratio requirement

In the case of the 2018 Coty Revolving Credit Facility and the 2018 Coty Term A Facility, the applicable margin means the lesser of a percentage per annum to be determined in accordance with the leverage-based pricing grid and the debt rating-based grid below:

Pricing Tier						Total Net Leverage Ratio:						LIBOR plus:						Alternative Base Rate Margin:
1.0						Greater than or equal to 4.75:1						2.000%						1.000%
2.0						Less than 4.75:1 but greater than or equal to 4.00:1						1.750%						0.750%
3.0						Less than 4.00:1 but greater than or equal to 2.75:1						1.500%						0.500%
4.0						Less than 2.75:1 but greater than or equal to 2.00:1						1.250%						0.250%
5.0						Less than 2.00:1 but greater than or equal to 1.50:1						1.125%						0.125%
6.0						Less than 1.50:1						1.000%						—%

Pricing Tier						Debt Ratings S&P/Moody’s:						LIBOR plus:						Alternative Base Rate Margin:
5.0						Less than BB+/Ba1						2.000%						1.000%
4.0						BB+/Ba1						1.750%						0.750%
3.0						BBB-/Baa3						1.500%						0.500%
2.0						BBB/Baa2						1.250%						0.250%
1.0						BBB+/Baa1 or higher						1.125%						0.125%

The 2018 Coty Credit Agreement contains affirmative and negative covenants. The negative covenants include, among other things, limitations on debt, liens, dispositions, investments, fundamental changes, restricted payments and affiliate transactions. With certain exceptions as described below, the 2018 Coty Credit Agreement, as amended, includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period.

Quarterly Test Period Ending									Total Net Leverage Ratio (a)
September 30, 2021 through December 31, 2021									5.25 to 1.00
March 31, 2022									5.00 to 1.00
June 30, 2022									4.75 to 1.00
September 30, 2022									4.50 to 1.00
December 31, 2022									4.25 to 1.00
March 31, 2023 through June 30, 2023									4.00 to 1.00

(a) Total Net Leverage Ratio means, as of any date of determination, the ratio of: (a) (i) Total Indebtedness minus (ii) unrestricted and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP to (b) Adjusted EBITDA for the most recently ended Test Period (each of the defined terms, including Adjusted EBITDA, used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement, as amended). Adjusted EBITDA, as defined in the 2018 Coty Credit Agreement, as amended, includes certain add backs related to cost savings, unusual events such as COVID-19, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement, as amended.

Schedule of line of credit facilities

Fair Value of Debt

			September 30, 2021												June 30, 2021
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Senior Secured Notes			$	1,712.2					$	1,755.9					$	1,733.3					$	1,749.1
2018 Coty Credit Agreement			2,141.4						2,094.0						2,245.7						2,188.5
Senior Unsecured Notes			1,478.3						1,502.3						1,502.3						1,500.5

Schedule of maturities of long-term debt

Aggregate maturities of the Company’s long-term debt, including the current portion of long-term debt and excluding capital lease obligations as of September 30, 2021, are presented below:

Fiscal Year Ending June 30,
2022, remaining			$	17.9
2023			1,363.1
2024			23.9
2025			1,374.7
2026			2,552.3
Thereafter			—
Total			$	5,331.9

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