Avon 2013 Annual Report Download - page 89

of the related call option and approximately $4.0 principal amount of additional notes issued for cash. In May 2003, $125.0 principal
amount of registered senior notes were issued in exchange for the modified notes held by the sole note holder. No cash proceeds were
received by us. The registered senior notes bear interest at a per annum rate of 4.625%, payable semi-annually, and matured on May 15,
2013 (the “4.625% Notes”). The transaction was accounted for as an exchange of debt instruments and, accordingly, the premium related
to the original notes was amortized over the life of the new 4.625% Notes. The 4.625% Notes were repaid in full at maturity. At
December 31, 2012, the carrying value of the 4.625% Notes represented the $125.0 principal amount, net of the unamortized discount to
face value of $1.0.
In June 2003, we issued to the public $250.0 principal amount of registered senior notes (the “4.20% Notes”). The 4.20% Notes mature on
July 15, 2018, and bear interest at a per annum rate of 4.20%, payable semi-annually. The carrying value of the 4.20% Notes represented
the $250.0 principal amount, net of the unamortized discount to face value of $.4 and $.4 at December 31, 2013 and 2012, respectively.
The net proceeds from the offering were used to repay indebtedness outstanding under our commercial paper program and for general
corporate purposes.
In March 2008, we issued $500.0 principal amount of notes payable in a public offering. $250.0 of the notes bear interest at a per annum
rate equal to 4.80%, payable semi-annually, and matured on March 1, 2013, (the “2013 Notes”). $250.0 of the notes bear interest at a per
annum rate of 5.75%, payable semi-annually, and mature on March 1, 2018 (the “2018 Notes”). The net proceeds from the offering of
$496.3 were used to repay indebtedness outstanding under our commercial paper program and for general corporate purposes. The 2013
Notes were repaid in full at maturity. At December 31, 2012, the carrying value of the 2013 Notes represented the $250.0 principal amount,
net of an immaterial amount of the unamortized discount to face value. The carrying value of the 2018 Notes represented the $250.0
principal amount, net of the unamortized discount to face value of $.4 at December 31, 2013 and $.4 at December 31, 2012.
In March 2009, we issued $850.0 principal amount of notes payable in a public offering. $500.0 of the notes bear interest at a per annum
rate equal to 5.625%, payable semi-annually, and were scheduled to mature on March 1, 2014 (the “2014 Notes”). $350.0 of the notes
bear interest at a per annum rate equal to 6.50%, payable semi-annually, and mature on March 1, 2019 (the “2019 Notes”). The net
proceeds from the offering of $837.6 were used to repay indebtedness outstanding under our commercial paper program and for general
corporate purposes. On April 15, 2013 we prepaid the 2014 Notes at a prepayment price equal to 100% of the principal amount of $500.0,
plus accrued interest of $3.4 and a make-whole premium of $21.7. In connection with the prepayment of our 2014 Notes, we incurred a
loss on extinguishment of debt of $13.0 in the second quarter of 2013 consisting of the $21.7 make-whole premium for the 2014 Notes
and the write-off of $1.1 of debt issuance costs and discounts related to the initial issuance of the 2014 Notes, partially offset by a deferred
gain of $9.8 associated with the January 2013 interest-rate swap agreement termination. See Note 8, Financial Instruments and Risk
Management for more information. At December 31, 2012, the carrying value of the 2014 Notes represented the $500.0 principal amount,
net of the unamortized discount to face value of $.6. The carrying value of the 2019 Notes represented the $350.0 principal amount, net of
the unamortized discount to face value of $2.3 at December 31, 2013 and $2.7 at December 31, 2012.
In March 2013, we issued, in a public offering, $250.0 principal amount of 2.375% Notes, due March 15, 2016 (the “2016 Notes”), $500.0
principal amount of 4.60% Notes, due March 15, 2020 (the “2020 Notes”), $500.0 principal amount of 5.00% Notes, due March 15, 2023
(the “2023 Notes”) and $250.0 principal amount of 6.95% Notes, due March 15, 2043 (the “2043 Notes”) (collectively, the “Notes”). The
net proceeds from these Notes were used to repay $380.0 of the outstanding principal amount of the term loan agreement, to prepay the
Private Notes and 2014 Notes (plus make-whole premium and accrued interest), and to repay the 4.625% Notes, due May 15, 2013 at
maturity. Interest on the Notes is payable semi-annually on March 15 and September 15 of each year. The carrying value of the 2016 Notes
represented the $250.0 principal amount, net of the unamortized discount to face value of $.1 at December 31, 2013. The carrying value of
the 2020 Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $.7 at December 31, 2013. The
carrying value of the 2023 Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $4.5 at
December 31, 2013. The carrying value of the 2043 Notes represented the $250.0 principal amount, net of the unamortized discount to
face value of $.7 at December 31, 2013.
A V O N 2013 F-19