By Andrea Heisinger
New York, May 2 - Altria Group, Inc. sold $1.5 billion of 4.75% 10-year notes on Monday to yield Treasuries plus 152 basis points, said a market source away from the sale.
The notes were sold at the low end of guidance in the 155 bps area, the source said.
The non-callable notes (Baa1/BBB/BBB+) priced at 99.575 to yield 4.804%.
There is a change-of-control put at 101%.
Active bookrunners were Goldman Sachs & Co. and RBS Securities Inc. Citigroup Global Markets Inc. was a passive bookrunner.
Senior co-managers were Morgan Stanley & Co., Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC.
Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, CastleOak Securities LP and Loop Capital Markets LLC were the co-managers.
Proceeds are being used for general corporate purposes.
The notes are guaranteed by Philip Morris USA Inc.
The holding company for tobacco subsidiaries is based in Richmond, Va.
| Issuer: | Altria Group, Inc.
|
| Guarantor: | Philip Morris USA Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 5, 2021
|
| Bookrunners: | Goldman Sachs & Co., RBS Securities Inc. (active), Citigroup Global Markets Inc. (passive)
|
| Senior co-managers: | Morgan Stanley & Co., Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, CastleOak Securities LP, Loop Capital Markets LLC
|
| Coupon: | 4.75%
|
| Price: | 99.575
|
| Yield: | 4.804%
|
| Spread: | Treasuries plus 152 bps
|
| Call: | Non-callable
|
| Change-of-control put: | 101%
|
| Trade date: | May 2
|
| Settlement date: | May 5
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 155 bps area
|
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