NEW YORK, June 2 /PRNewswire/ -- The Estee Lauder Companies Inc.
(NYSE: EL) today announced that the offering of 4,031,000 shares of Class A
Common Stock by certain members of the Lauder family was priced at $60 7/8 per
share. Of the total Class A Common Stock offered, 3,224,800 shares are being
offered in the United States and 806,200 shares are being offered outside the
United States. The 4,031,000 shares represent 3.4% of the outstanding shares
of Class A and Class B Common Stock.
In addition, a separate offering of 4,076,548 Estee Lauder TRACES (Trust
Automatic Common Exchange Securities) was priced at $60 7/8 per security. The
Estee Lauder TRACES (NYSE: ECT) are hybrid equity securities that will be
automatically exchanged for Class A Common Stock at maturity in three years
or, with respect to approximately 24.3% of the amount of each TRACES
(or 34.2% if the underwriter's over-allotment is exercised), for cash at the
election of the participating member of the Lauder family. Each Estee Lauder
TRACES represents the right to receive an annual distribution (paid out
quarterly) of $3.80. At maturity, the Estee Lauder TRACES will be exchanged
for between 0.8333 shares and one share of Class A Common Stock of The Estee
Lauder Companies that will be provided by the participating selling
stockholders. The maximum number of shares of Class A Common Stock
deliverable to holders of the Estee Lauder TRACES at maturity represent
3.4% of the outstanding shares of Class A and Class B Common Stock currently
outstanding. Until so delivered, the voting rights with respect to these
shares will be retained by the participating selling stockholders.
Assuming the delivery of all 4,076,548 shares of Class A Common Stock to
the holders of Estee Lauder TRACES upon maturity, and no other change in the
outstanding shares and holdings, members of the Lauder family will continue to
own 69.9% of the outstanding shares of Class A and Class B Common Stock,
representing 94.4% of the outstanding voting power of the Company's Common
Stock.
Underwriters for the Class A Common Stock offering include Goldman, Sachs
& Co., Merrill Lynch & Co., J.P. Morgan & Co. and SBC Warburg Dillon Read Inc.
Underwriters for the TRACES offering include Goldman, Sachs & Co., Merrill
Lynch & Co. and J.P. Morgan & Co.
Copies of the final prospectuses for the offerings may be obtained from
Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, New
York 10004.
The Estee Lauder Companies Inc. is one of the world's leading
manufacturers and marketers of quality skin care, makeup, fragrance and hair
care products. The Company's products are sold in over 100 countries and
territories under well-recognized brand names, including Estee Lauder,
Clinique, Aramis, Prescriptives, Origins, M-A-C, Bobbi Brown essentials, Tommy
Hilfiger, jane, Donna Karan Cosmetics and Aveda.
SOURCE The Estee Lauder Companies Inc.
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fax, 800-758-5804, ext. 251850
CONTACT:
Investor Relations: Dennis D'Andrea,
212-572-4384, or Media Relations: Karen O'Connor, 212-572-4439,
both of Estee Lauder
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