By Lisa Kerner
Charlotte, N.C., April 29 – Philip Morris International Inc. gave details on Friday of its sale of $1 billion of senior notes (A2/A) in two tranches, which priced on Thursday.
According to an FWP filing with the Securities and Exchange Commission and market sources, the company priced $500 million of 2.125% seven-year notes at a spread of 68 basis points over Treasuries, compared to guidance of Treasuries plus 70 bps, plus or minus 2 bps.
The notes priced at 99.002 to yield 2.28%.
In the second tranche, the company priced $500 million in a reopening of its 4.25% bonds due Nov. 10, 2044 at 118 bps over Treasuries. The bonds were guided at 120 bps, plus or minus 2 bps, over Treasuries.
The notes priced at 106.777 to yield 3.865%.
As previously reported, the company originally sold $750 million of the bonds on Nov. 3, 2014 at a spread of Treasuries plus 135 bps. The total outstanding is $1.25 billion.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Barclays, Santander Investment Securities Inc. and Societe Generale CIB were the bookrunners.
Proceeds will be added to the company’s general funds, which may be used for general corporate purposes, to refinance debt, to meet working capital requirements or to repurchase common stock.
The producer of cigarette and tobacco products is based in New York City.
| Issuer: | Philip Morris International Inc.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Barclays, Santander Investment Securities Inc., Societe Generale CIB
|
| Co-managers: | BBVA Securities Inc., UBS Securities LLC
|
| Pricing date: | April 28
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2023
|
| Amount: | $500 million
|
| Maturity: | May 10, 2023
|
| Coupon: | 2.125%
|
| Price: | 99.002
|
| Yield: | 2.28%
|
| Call: | Make-whole call at Treasuries plus 10 bps prior to March 10, 2023, then callable at par
|
| Spread: | Treasuries plus 68 bps
|
| Price guidance: | Treasuries plus 70 bps, plus or minus 2 bps
|
|
|
| Notes due 2044
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| Amount: | $500 million reopening
|
| Maturity: | Nov. 10, 2044
|
| Coupon: | 4.25%
|
| Price: | 106.777
|
| Yield: | 3.865%
|
| Spread: | Treasuries plus 118 bps
|
| Price guidance: | Treasuries plus 120 bps, plus or minus 2 bps
|
| Total outstanding: | $1.25 billion, including $750 million priced Nov. 3, 2014 at 135 bps over Treasuries
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