Pedestrians walk past a Bath & Body Works shop.
Craig Warga | Bloomberg | Getty Images
Lingerie retailer Victoria’s Secret is taking out a $ 500 million loan to fund its split from Bath & Body Works, Bloomberg News reported Monday.
The loan is due in 2028 and could pay interest that is 300-325 basis points above the Libor, Bloomberg reported, citing an unnamed source. JPMorgan Chase is overseeing the sale with investor orders due by June 30, the report said.
The report comes after parent company L Brands announced the spin-off last month, which would split the two brands into independent, publicly traded companies by August.
Representatives from Victoria’s Secret, Bath & Body Works, L Brands and JPMorgan Chase did not immediately respond to CNBC’s request for comment.
Last month, L Brands released quarterly results that exceeded analysts’ expectations. The company said its results were due to more customers paying full price for products and strong momentum across its various lines of business.
Read more about the new loan in Bloomberg.