By Andrea Heisinger
New York, April 7 - Lorillard Tobacco Co. sold a benchmark $1 billion of senior unsecured notes (Baa2/BBB-/) on Wednesday in two tranches that were reallocated from a single tranche, a market source said.
The $750 million of 6.875% 10-year notes priced at 99.9 to yield 6.888% with a spread of 300 basis points over Treasuries.
An added tranche of $250 million in 8.125% 30-year notes sold at 99.479 to yield 8.171% with a spread of Treasuries plus 340 bps.
The tranches do not have a call option, the source said.
The notes feature a change-of-control put of 101% and are guaranteed by parent company Lorillard, Inc.
Active bookrunners were Barclays Capital Inc. and RBS Securities Inc. Passive bookrunners were Goldman Sachs & Co., J.P. Morgan Securities Inc. and Wells Fargo Securities.
Proceeds are being added to a general fund to be used for general corporate purposes.
The cigarette maker is based in Greensboro, N.C.
| Issuer: | Lorillard Tobacco Co.
|
| Guarantor: | Lorillard Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion
|
| Bookrunners: | Barclays Capital Inc., RBS Securities Inc. (active), Goldman Sachs & Co., J.P. Morgan Securities Inc., Wells Fargo Securities (passive)
|
| Change-of-control put: | 101%
|
| Trade date: | April 7
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | May 1, 2020
|
| Coupon: | 6.875%
|
| Price: | 99.9
|
| Yield: | 6.888%
|
| Spread: | Treasuries plus 300 bps
|
| Call: | Non-callable
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | May 1, 2040
|
| Coupon: | 8.125%
|
| Price: | 99.479
|
| Yield: | 8.171%
|
| Spread: | Treasuries plus 340 bps
|
| Call: | Non-callable
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
