By Andrea Heisinger
New York, May 15 - Lorillard Tobacco Co. was in Wednesday's market with a $500 million sale of 3.75% 10-year senior notes (Baa2/BBB-/BBB) priced at Treasuries plus 180 basis points, according to an informed source and an FWP filing with the Securities and Exchange Commission.
Initial price talk on the sale was in the high 100 bps over Treasuries area, the source said.
Pricing was at 99.967 to yield 3.754%.
The notes are callable at par on or after Feb. 20, 2023.
There is a change-of-control put at 101%, as well as if there is a ratings downgrade.
Active bookrunners were Barclays, Goldman Sachs & Co. and Wells Fargo Securities LLC. Passive bookrunners were Fifth Third Securities Inc., J.P. Morgan Securities LLC and RBS Securities Inc.
Proceeds will be added to the company's general funds and used for general corporate purposes.
There is a guarantee on the notes from Lorillard, Inc.
The Greensboro, N.C.-based cigarette maker was last in the U.S. bond market with a $500 million sale of five-year notes on Aug. 16, 2012.
| Issuer: | Lorillard Tobacco Co.
|
| Guarantor: | Lorillard, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | May 20, 2023
|
| Bookrunners: | Barclays, Goldman Sachs & Co., Wells Fargo Securities LLC (active), Fifth Third Securities Inc., J.P. Morgan Securities LLC, RBS Securities Inc. (passive)
|
| Coupon: | 3.75%
|
| Price: | 99.967
|
| Yield: | 3.754%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | On or after Feb. 20, 2023 at par
|
| Change-of-control put: | 101%, on ratings downgrade
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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