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Altria wraps tender offer for 9.95% notes, 10.2% notes; pricing set
By Susanna Moon
Chicago, Sept. 20 – Altria Group, Inc. said investors had tendered $441,081,000 of its 9.95% notes due 2038 and $492,961,000 of its 10.2% notes due 2039.
The purchase price per $1,000 principal amount was set at $1,842.71 for the 9.95% notes and at $1,884.63 for the 10.2% notes, according to a company update in the offer that began Sept. 13.
Pricing was set at 11 a.m. ET on Sept. 19 using a spread of 167 basis points over the 2.5% Treasury due May 15, 2046 for a reference yield of 2.443%.
Altria was tendering for all of its $682,321,000 of outstanding 9.95% notes and its $717,708,000 of outstanding 10.2% notes.
The tender ended at 5 p.m. ET on Sept. 19.
In addition, the company will pay accrued interest up to but excluding the payment date.
The total amount of notes tendered in the offer includes $1,187,000 principal amount of outstanding 2038 notes and $1,165,000 principal amount of outstanding 2039 notes that remain subject to guaranteed delivery procedures, the release noted.
Funding for the offer will come from the sale of new senior notes.
Altria sold $2 billion of guaranteed senior notes in two tranches on Sept. 13, as previously reported.
The company had said it expects the transactions to reduce is weighted average coupon rate and ongoing interest expense and to extend the weighted average maturity of its debt.
Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955), Goldman Sachs & Co. (800 828-3182 or 212 357-1039), Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are dealer managers.
Global Bondholder Services Corp. (212 430-3774 or 866 470-3900) is information agent and depositary.
Altria is a Richmond, Va., maker of tobacco products.
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