By Cristal Cody
Tupelo, Miss., Oct. 29 – Philip Morris International Inc. priced a $1.5 billion two-tranche offering of notes (A2/A/A) on Thursday, according to a market source.
A $750 million offering of 0.875% notes due May 1, 2026 priced at a spread of 58 basis points over Treasuries.
Initial talk was in the 80 bps area.
The company priced $750 million of 1.75% 10-year notes at a spread of 103 bps over Treasuries.
The notes were talked to price at the 125 bps over Treasuries area.
Barclays, Santander Investment Securities Inc. and SG Americas Securities LLC were the active bookrunners. Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc. were passive.
Proceeds will be used for general corporate purposes, to repay commercial paper, to meet working capital requirements and to repurchase common stock.
The producer of cigarette and tobacco products is based in New York.
Issuer: | Philip Morris International Inc.
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Amount: | $1.5 billion
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Description: | Notes
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Bookrunners: | Barclays, Santander Investment Securities Inc. and SG Americas Securities LLC (active), Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and HSBC Securities (USA) Inc. (passive)
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Trade date: | Oct. 29
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Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A
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Distribution: | SEC registered
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Notes due 2026
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Amount: | $750 million
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Maturity: | May 1, 2026
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Coupon: | 0.875%
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Spread: | Treasuries plus 58 bps
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Price guidance: | Treasuries plus 80 bps area
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Notes due 2030
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Amount: | $750 million
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Maturity: | Nov. 1, 2030
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Coupon: | 1.75%
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Spread: | Treasuries plus 103 bps
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Price guidance: | Treasuries plus 125 bps area
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