By Andrea Heisinger
New York, Aug. 16 - Lorillard Tobacco Co. sold $500 million of 2.3% five-year senior notes on Thursday to yield Treasuries plus 150 basis points, a market source said.
The notes (Baa2/BBB-/BBB) were priced at 99.85 to yield 2.332%.
There is a change-of-control feature at 101%.
Barclays, J.P. Morgan Securities LLC and RBS Securities Inc. were the active bookrunners. Passive bookrunners were Fifth Third Securities Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC.
Proceeds will be added to the company's general funds to be used for general corporate purposes.
The notes are guaranteed by Lorillard, Inc. Lorillard Tobacco was last in the bond market with a $750 million deal in two tranches on Aug. 1, 2011. A 3.5% five-year note from that offering was priced at 225 bps over Treasuries.
The cigarette maker is based in Greensboro, N.C.
| Issuer: | Lorillard Tobacco Co.
|
| Guarantor: | Lorillard, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 21, 2017
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, RBS Securities Inc. (active), Fifth Third Securities Inc., Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Coupon: | 2.3%
|
| Price: | 99.85
|
| Yield: | 2.332%
|
| Spread: | Treasuries plus 150 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 16
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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