S&P: Lorillard notes at BBB-

Standard & Poor's said it assigned a BBB- senior unsecured debt rating to Lorillard Tobacco Co.'s $500 million of 3.5% senior unsecured notes due August 2016 and $250 million of 7% senior unsecured notes due August 2041.

Lorillard Tobacco, a wholly owned and primary subsidiary of Lorillard Inc., issued the notes under the company's Rule 415 shelf registration filed in June 2009. The notes are fully and unconditionally guaranteed by Lorillard.

The company is expected to use net proceeds from the proposed debt offering for general corporate purposes, which may include the repurchase, redemption or retirement of securities, acquisitions, working capital requirements and capital expenditures.

Pro forma for the debt issuance, the agency said it estimates lease- and pension-adjusted total debt-to-EBITDA to be about 1.4x.

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