By Aleesia Forni
Virginia Beach, June 10 – B.A.T. International Finance plc priced $4.5 billion of senior notes (A3/A-/A-) on Wednesday in five tranches, a market source said.
The issuer priced $750 million of 1.85% three-year notes at Treasuries plus 75 basis points.
A $500 million three-year floating-rate note priced at par to yield Libor plus 51 bps.
There was also a $1.25 billion tranche of 2.75% five-year notes priced with a spread of Treasuries plus 100 bps.
The company sold $500 million of 3.5% seven-year notes at 130 bps over Treasuries.
A $1.5 billion tranche of 3.95% 10-year notes priced at Treasuries plus 150 bps.
All tranches sold at the tight end of price guidance.
The bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities and J.P. Morgan Securities LLC.
Guarantors are British American Tobacco plc, B.A.T. Netherlands Finance BV and British American Tobacco Holdings (The Netherlands).
The tobacco company is based in London.
| Issuer: | B.A.T. International Finance plc
|
| Guarantors: | British American Tobacco plc, B.A.T. Netherlands Finance BV, British American Tobacco Holdings (The Netherlands)
|
| Issue: | Senior notes
|
| Amount: | $4.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities, J.P. Morgan Securities LLC
|
| Trade date: | June 10
|
| Settlement date: | June 15
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Fitch: A-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2018
|
| Coupon: | 1.85%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | June 15, 2018
|
| Coupon: | Libor plus 51 bps
|
| Price: | Par
|
| Yield: | Libor plus 51 bps
|
| Price guidance: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 15, 2020
|
| Coupon: | 2.75%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 135 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 15, 2025
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area
|
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