By Mary-Katherine Stinson
Lexington, Ky., Oct. 18 – B.A.T. Capital Corp. priced $600 million 7.75% notes due 2032, according to an FWP filed with the Securities and Exchange Commission.
The notes are guaranteed by British American Tobacco plc, B.A.T. International Finance plc, B.A.T. Netherlands Finance BV and Reynolds American Inc.
The notes priced at 99.541 to yield 7.817%, or at a spread of 380 basis points over Treasuries.
The notes are callable with a Treasuries plus 50 bps make-whole premium until July 19, 2032, the par call date.
Leading as joint bookrunners on the sale are Barclays, BBVA Securities Inc., Goldman Sachs & Co. LLC, and HSBC Securities (USA) Inc.
Commerz Markets LLC joins as a bookrunner.
Proceeds will be used for general corporate purposes, including potentially repaying any existing debt.
The notes will be listed on the New York Stock Exchange.
British American Tobacco is a London-based international tobacco company.
| Issuer: | B.A.T. Capital Corp.
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| Guarantors: | British American Tobacco plc, B.A.T. International Finance plc, B.A.T. Netherlands Finance BV and Reynolds American Inc.
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| Amount: | $600 million
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| Issue: | Senior notes
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| Maturity: | Oct. 19, 2032
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| Bookrunners: | Barclays, BBVA Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Commerz Markets LLC
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| Co-manager: | Emirates NBD Bank PJSC
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| Trustee: | Citibank, NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP, Linklaters LLP, Stibbe NV and Womble Bond Dickinson (US) LLP
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| Counsel to underwriters: | Davis Polk & Wardwell London LLP
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| Coupon: | 7.75%
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| Price: | 99.541
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| Yield: | 7.817%,
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| Spread: | Treasuries plus 380 bps
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| Call feature: | Make-whole call at Treasuries plus 50 bps until July 19, 2032; thereafter at par
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| Trade date: | Oct. 17
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| Settlement date: | Oct. 19
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Distribution: | SEC registered
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| Cusip: | 05526DBX2
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