By Andrea Heisinger
New York, May 31 - British American Tobacco International Finance plc sold $2 billion of notes (Baa1/BBB+/BBB+) on Thursday in three maturities, a market source said.
The $500 million of 1.4% three-year notes sold at 99.729 to yield 1.493% with a spread of Treasuries plus 115 basis points. The notes priced at the low end of guidance in the 120 bps area.
The tranche has a make-whole call at 20 bps over Treasuries.
A $600 million tranche of 2.125% five-year paper priced at 99.844 to yield 2.158% with a spread of 150 bps over Treasuries. The tranche sold at the tight end of guidance in the 155 bps area.
There is a make-whole call at 25 bps over Treasuries for the notes.
The third part was $900 million of 3.25% 10-year notes priced at 99.064 to yield 3.361% with a spread of Treasuries plus 180 bps. The notes were priced at the tight end of talk in the 185 bps area.
The 10-year notes have a make-whole call at 30 bps over Treasuries.
All of the tranches had a range of plus or minus 5 bps on price talk.
Barclays Capital Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC were the bookrunners.
The deal was done under Rule 144A and Regulation S.
The issuer was last in the market with a $1 billion offering in two parts on Nov. 14, 2008. That sale included 8.125% five-year notes and 9.5% 10-year paper, each priced at 600 bps over Treasuries.
The financing subsidiary of multinational tobacco company British American Tobacco plc is based in London.
| Issuer: | British American Tobacco International Finance plc
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Barclays Capital Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | May 31
|
| Settlement date: | June 7
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | 2015
|
| Coupon: | 1.4%
|
| Price: | 99.729
|
| Yield: | 1.493%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 120 bps area
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | 2017
|
| Coupon: | 2.125%
|
| Price: | 99.844
|
| Yield: | 2.158%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 155 bps area
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | 2022
|
| Coupon: | 3.25%
|
| Price: | 99.064
|
| Yield: | 3.361%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at 30 bps over Treasuries
|
| Price talk: | 185 bps area
|
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