Lorillard plans debt offering, up to $250 million share repurchase

By Andrea Heisinger

New York, May 21 - Lorillard, Inc. is planning an unspecified debt issue, according to a press release Thursday.

The issue will be used to enhance the company's capital structure, to reduce the cost of capital and to improve shareholder returns, according to the release.

Lorillard has also received authorization from its board of directors to repurchase up to $250 million in common shares.

Proceeds from the debt sale will be used to fund an additional stock repurchase, for acquisitions, to fund dividends or for other general corporate purposes.

The deal's timing, structure and amount depends on the credit and interest rate environment, according to the news release.

The third-largest cigarette manufacturer in the United States is based in Greensboro, N.C.

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