Victoria’s Secret reportedly borrows $500 million to finance split from Bath & Body Works

Lingerie retailer Victoria’s Secret is taking out a $500 million loan to finance its split from Bath & Body Works, Bloomberg News reported Monday.

The loan is due 2028 and could pay interest that’s 300 to 325 basis points above 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 that would separate the two brands into independent, publicly traded companies by August.

Representatives for Victoria’s Secret, Bath & Body Works, L Brands and JPMorgan Chase did not immediately respond to CNBC’s requests for comment.

Last month, L Brands reported quarterly numbers that beat analyst expectations. The company said its results were driven by more customers paying full price for products and strong momentum across its different divisions.

Read more about the new loan in Bloomberg.