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DEBT (Tables)

9 Months Ended

Mar. 31, 2021

The Company’s debt balances consisted of the following as of March 31, 2021 and June 30, 2020, respectively:


	March 31, 2021		June 30, 2020
Short-term debt	$	0.5	$	—
2018 Coty Credit Agreement
2018 Coty Revolving Credit Facility due April 2023	678.2		1,438.8
2018 Coty Term A Facility due April 2023	1,799.1		2,959.0
2018 Coty Term B Facility due April 2025	1,457.5		2,308.5
Senior Unsecured Notes
2026 Dollar Notes due April 2026	550.0		550.0
2023 Euro Notes due April 2023	643.7		618.3
2026 Euro Notes due April 2026	292.6		281.1
Other long-term debt and capital lease obligations	0.3		0.6
Total debt	5,421.9		8,156.3
Less: Short-term debt and current portion of long-term debt	(193.7)		(188.3)
Total Long-term debt	5,228.2		7,968.0
Less: Unamortized debt issuance costs	(41.0)		(66.9)
Less: Discount on Long-term debt	(4.8)		(9.0)
Total Long-term debt, net	$	5,182.4	$	7,892.1

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 (as amended April 29, 2020) (a)
March 31, 2021									N/A (not tested)(b)
June 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.

(b) The 2018 Coty Credit Agreement, as amended, establishes a quarterly minimum liquidity covenant for this period of $500.0. As of March 31, 2021, the immediate liquidity was $2,376.8.

Schedule of line of credit facilities

Fair Value of Debt


	March 31, 2021				June 30, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2018 Coty Credit Agreement	$	3,934.8	$	3,810.5	$	6,706.3	$	5,962.3
Senior Unsecured Notes	1,486.3		1,466.6		1,449.4		1,270.3

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 March 31, 2021, are presented below:


Fiscal Year Ending June 30,
2021, remaining	$	48.3
2022	193.0
2023	2,933.6
2024	23.9
2025	1,379.7
Thereafter	842.6
Total	$	5,421.1

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details