Published on 9/4/2019 in the Prospect News Investment Grade Daily.
New Issue: B.A.T Capital details $3.5 billion of notes sold in four tranches
By Devika Patel
Knoxville, Tenn., Sept. 4 – B.A.T Capital Corp. offered further details about a $3.5 billion sale of guaranteed debt securities that priced on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1 billion of 2.789% notes due 2024 at a spread of Treasuries plus 145 basis points. These notes priced at par.
There were $1 billion of 3.215% notes due 2026 priced at a spread of Treasuries plus 180 bps. These notes priced at par.
B.A.T. sold $500 million of 3.462% notes due 2029 at a spread of Treasuries plus 200 bps. These notes priced at par.
Finally, there were $1 billion of 4.758% notes due 2049 at a spread of Treasuries plus 280 bps. These notes priced par.
The notes will be fully and unconditionally guaranteed on a senior and unsecured and joint and several basis by British American Tobacco plc, B.A.T. Netherlands Finance BV, B.A.T. International Finance plc and Reynolds American Inc.
B.A.T. intends to use the net proceeds of the offering to refinance upcoming maturities, to potentially redeem prior to maturity some of the B.A.T. Group’s bonds and for general corporate purposes.
BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are acting as joint bookrunning managers for the offering.
The company is a subsidiary of London-based multinational tobacco company British American Tobacco.
| Issuer: | B.A.T. Capital Corp.
|
| Guarantor: | British American Tobacco plc
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| Issue: | Guaranteed debt securities
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| Amount: | $3.5 billion
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| Bookrunners: | BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
|
| Co-managers: | Bank of China Ltd., London Branch, BBVA Securities Inc., Commerzbank Capital Markets Corp., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank and UniCredit Capital Markets LLC
|
| Pricing date: | Sept. 3
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| Settlement date: | Sept. 6
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| Distribution: | Registered, off the shelf
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|
|
| 2024 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 6, 2024
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| Coupon: | 2.789%
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| Price: | Par
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| Yield: | 2.789%
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| Spread: | Treasuries plus 145 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Aug. 6, 2024, then a par call
|
|
|
| 2026 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 6, 2026
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| Coupon: | 3.215%
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| Price: | Par
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| Yield: | 3.215%
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| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until July 6, 2026, then a par call
|
|
|
| 2029 notes
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| Amount: | $500 million
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| Maturity: | Sept. 6, 2029
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| Coupon: | 3.462%
|
| Price: | Par
|
| Yield: | 3.462%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until June 6, 2029, then a par call
|
|
|
| 2049 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 6, 2049
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| Coupon: | 4.758%
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| Price: | Par
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| Yield: | 4.758%
|
| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until March 6, 2049, then a par call
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