By Rebecca Melvin
New York, Sept. 3 – B.A.T Capital Corp. priced $3.5 billion principal amount of guaranteed debt securities, according to a company release on Tuesday.
The company priced $1 billion of 2.789% notes due 2024; $1 billion 3.215% notes due 2026; $500 million of 3.462% notes due 2029; and $1 billion of 4.758% notes due 2049.
Further pricing details were not immediately known.
The issuance is expected to close on Sept. 6, subject to customary closing conditions.
The notes will be fully and unconditionally guaranteed on a senior and unsecured and joint and several basis by B.A.T., B.A.T. Netherlands Finance BV, B.A.T. International Finance plc and Reynolds American Inc.
B.A.T. intends to use the net proceeds of the offering to refinance upcoming maturities, to potentially redeem prior to maturity some of the B.A.T. Group’s bonds and for general corporate purposes.
BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are acting as joint bookrunning managers for the offering.
The offering is being made under B.A.T.’s existing effective shelf registration statement plans to sell four tranches of fixed-rate notes due in 2024, 2026, 2029 and 2049, according to a 424B5 filing with the Securities and Exchange Commission.
The notes feature a make-whole call and then a par call.
Proceeds will be used to refinance upcoming maturities and for general corporate purposes.
The company is a subsidiary of London-based multinational tobacco company British American Tobacco.
| Issuer: | B.A.T. Capital Corp.
|
| Guarantor: | British American Tobacco plc
|
| Issue: | Guaranteed debt securities
|
| Amount: | $3.5 billion
|
| Bookrunners: | BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
|
| Pricing date: | Sept. 3
|
| Settlement: | Sept. 6
|
| Distribution: | Registered, off the shelf
|
|
|
| 2024 notes
|
| Maturity: | 2024
|
| Amount: | $1 billion
|
| Coupon: | 2.789%
|
|
|
| 2026 notes
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| Maturity: | 2026
|
| Amount: | $1 billion
|
| Coupon: | 3.215%
|
|
|
| 2029 notes
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| Maturity: | 2029
|
| Amount: | $500 million
|
| Coupon: | 3.462%
|
|
|
| 2049 notes
|
| Maturity: | 2049
|
| Amount: | $1 billion
|
| Coupon: | 4.758%
|
|
|
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