By William Gullotti and Cristal Cody
Buffalo, N.Y., July 21 – Imperial Brands Finance plc priced $1 billion of 6.125% five-year notes (Baa3/BBB) on Wednesday at 320 basis points over Treasuries, according to a market source.
The notes are guaranteed by Imperial Brands plc and Imperial Tobacco Ltd.
The notes were priced tighter than initial talk in the Treasuries plus 350 bps area.
The notes may be optional redeemed before June 27, 2027 with a Treasuries plus 50 bps make-whole premium. After that date, they may be redeemed at par.
Fixed income investor calls were held on Monday and Tuesday for the Regulation S and Rule 144A offering.
Bookrunners were BofA Securities, HSBC, Mizuho, MUFG, Standard Chartered Bank and Wells Fargo Securities.
Proceeds will be used for general funds, which may be used to refinance certain existing debt of the group, including the $1 billion of 3.5% notes due in February 2023.
Imperial Brands Finance is a financing arm of Bristol, England-based tobacco company Imperial Brands plc.
| Issuer: | Imperial Brands Finance plc
|
| Guarantors: | Imperial Brands plc and Imperial Tobacco Ltd.
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| Amount: | $1 billion
|
| Issue: | Notes
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| Maturity: | July 27, 2027
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| Bookrunners: | BofA Securities, HSBC, Mizuho, MUFG, Standard Chartered Bank and Wells Fargo Securities
|
| Co-managers: | Commerzbank, Emirates NBD Capital
|
| Counsel to issuer: | Allen & Overy LLP
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| Counsel to underwriter: | Davis Polk & Wardwell London LLP
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| Trustee: | Bank of New York Mellon
|
| Coupon: | 6.125%
|
| Price: | 98.956
|
| Spread: | Treasuries plus 320 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until June 27, 2027; thereafter at par
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| Change of control: | At par
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| Trade date: | July 21
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| Settlement date: | July 27
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
|
| Distribution: | Rule 144A and Regulation S
|
| Cusips: | G471ABWD8, 45262BAF0
|
| Initial talk: | Treasuries plus 350 bps area
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