A story in the Feb. 4 issue of the Prospect News Investment Grade Daily incorrectly reported the spread of a tranche of 30-year fixed-rate notes offered by Altria Group Inc. The correct spread was Treasuries plus 650 basis points. A corrected version of the story follows:
By Andrea Heisinger
New York, Feb. 4 - Altria Group Inc. priced $4.225 billion of notes (Baa1/BBB/BBB+) in three tranches, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The size was increased from a planned two tranches.
The $525 million of 7.75% five-year notes priced at 99.837 to yield 7.79%, or Treasuries plus 587.5 basis points.
The $2.2 billion of 9.25% 10-year notes priced at 99.881 to yield 9.268%, or Treasuries plus 637.5 bps.
The $1.5 billion of 10.2% 30-year notes priced at 99.963 to yield 10.204%, or Treasuries plus 650 bps.
The notes are guaranteed by Philip Morris USA Inc.
Bookrunners were Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., HSBC Securities, Santander Investment Securities Inc. and Scotia Capital.
Senior co-managers were Credit Suisse Securities, U.S. Bancorp and Wachovia Capital Markets.
Co-managers were Loop Capital Markets LLC and Williams Capital Group.
The cigarette and tobacco products company is based in Richmond, Va.
| Issuer: | Altria Group Inc.
|
| Guarantor: | Philip Morris USA Inc.
|
| Issue: | Notes
|
| Total amount: | $4.225 billion
|
| Bookrunners: | Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., HSBC Securities, Santander Investment Securities Inc., Scotia Capital
|
| Senior co-managers: | Credit Suisse Securities, U.S. Bancorp, Wachovia Capital Markets
|
| Co-managers: | Loop Capital Markets LLC, Williams Capital Group
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $525 million
|
| Maturity: | Feb. 6, 2014
|
| Coupon: | 7.75%
|
| Price: | 99.837
|
| Yield: | 7.79%
|
| Spread: | Treasuries plus 587.5 bps
|
|
|
| 10-year notes
|
| Amount: | $2.2 billion
|
| Maturity: | Aug. 6, 2019
|
| Coupon: | 9.25%
|
| Price: | 99.881
|
| Yield: | 9.268%
|
| Spread: | Treasuries plus 637.5 bps
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 6, 2039
|
| Coupon: | 10.2%
|
| Price: | 99.963
|
| Yield: | 10.204%
|
| Spread: | Treasuries plus 650 bps
|
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