By Andrea Heisinger
New York, June 18 - Lorillard Tobacco Co. priced $750 million of 8.125% 10-year senior notes Thursday at par to yield 8.125%, according to an FWP Securities and Exchange Commission filing.
The notes (Baa2/BBB-) priced at a spread of Treasuries plus 428.9 basis points.
They feature a change-of-control put of 101%, but do not have a make-whole redemption, a source close to the deal said.
Active bookrunners were Barclays Capital and J.P. Morgan Securities. Goldman Sachs & Co. and Wachovia Capital Markets were passive bookrunners.
Co-managers were Calyon Securities and RBS Securities.
Proceeds will be added to the company's general funds to be used for general corporate purposes, including repurchase, redemption and retirement of securities including common stock, additions to working capital and capital expenditures.
The notes are guaranteed by parent Lorillard Inc.
The cigarette maker is based in Greensboro, N.C.
| Issuer: | Lorillard Tobacco Co., guaranteed by Lorillard Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Maturity: | June 23, 2019
|
| Bookrunners: | Barclays Capital, J.P. Morgan Securities (active) Goldman Sachs & Co., Wachovia Capital Markets (passive)
|
| Co-managers: | Calyon Securities, RBS Securities
|
| Coupon: | 8.125%
|
| Price: | Par
|
| Yield: | 8.125%
|
| Spread: | Treasuries plus 428.9 bps
|
| Change-of-control put: | 101%
|
| Call: | Non-callable
|
| Trade date: | June 18
|
| Settlement date: | June 23
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch:
|
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