By Aleesia Forni
Virginia Beach, Oct. 28 - Altria Group Inc. sold a $3.2 billion two-part issue of senior notes (Baa1/BBB/BBB+) on Monday, according to an informed source.
The deal included $1.4 billion of 4% senior notes due 2024 priced at Treasuries plus 155 basis points.
The notes were sold at 99.378 to yield 4.073%.
There was also $1.8 billion of 5.375% notes due 2044 sold with a spread of Treasuries plus 175 bps.
Pricing was at 99.574 to yield 5.402%.
Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBS Securities Inc. and Scotiabank were the joint bookrunners.
Proceeds will be used for the repurchase of the company's notes accepted for purchase in a tender offer and for general corporate purposes.
The securities are guaranteed by Richmond, Va.-based parent Philip Morris USA Inc., a cigarette and smokeless tobacco product maker.
| Issuer: | Altria Group Inc.
|
| Guarantor: | Philip Morris USA Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.2 billion
|
| Joint bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBS Securities Inc., Scotiabank
|
| Trade date: | Oct. 28
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Notes due 2024
|
| Amount: | $1.4 billion
|
| Maturity: | 2024
|
| Coupon: | 4%
|
| Price: | 99.378
|
| Yield: | 4.073%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 155 bps to 160 bps
|
|
|
| Notes due 2044
|
| Amount: | $1.8 billion
|
| Maturity: | 2044
|
| Coupon: | 5.375%
|
| Price: | 99.574
|
| Yield: | 5.402%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | Treasuries plus 175 bps to 180 bps
|
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