By Devika Patel
Knoxville, Tenn., March 31 – British American Tobacco plc subsidiary B.A.T. Capital Corp. offered further details about a $2.4 billion sale of registered senior notes (Baa2/BBB+) that priced in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
B.A.T. Capital sold $900 million of 4.7% seven-year notes with a Treasuries plus 415 basis points spread.
A $1 billion tranche of 4.906% 10-year notes priced at a Treasuries plus 425 bps spread.
In the final tranche, the company sold $500 million of 5.282% 30-year notes at a 400 bps spread over Treasuries.
All three tranches priced at par and were initially talked at the Treasuries plus 450 bps area.
Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC and Santander Investment Securities Inc. were the bookrunners.
Bank of China Ltd. London Branch, Commerz Markets LLC, SMBC Nikko Securities America Inc. and UniCredit Capital Markets LLC are other underwriters.
British American Tobacco, B.A.T. International Finance plc, B.A.T. Netherlands Finance BV and Reynolds American Inc. are the guarantors.
Proceeds will be used for general corporate purposes, including the potential repayment of upcoming maturities.
British American Tobacco is a London-based international tobacco company.
| Issuer: | BAT Capital Corp.
|
| Guarantors: | British American Tobacco plc, B.A.T. International Finance plc, B.A.T. Netherlands Finance BV and Reynolds American Inc.
|
| Amount: | $2.4 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC and Santander Investment Securities Inc.
|
| Underwriters: | Bank of China Ltd. London Branch, Commerz Markets LLC, SMBC Nikko Securities America Inc. and UniCredit Capital Markets LLC
|
| Co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities LLC and Standard Chartered Bank
|
| Trade date: | March 30
|
| Settlement date: | April 2
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $900 million
|
| Maturity: | April 2, 2027
|
| Coupon: | 4.7%
|
| Price: | Par
|
| Yield: | 4.7%
|
| Spread: | Treasuries plus 415 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 2, 2027, then a par call
|
| Price guidance: | Treasuries plus 450 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 2, 2030
|
| Coupon: | 4.906%
|
| Price: | Par
|
| Yield: | 4.906%
|
| Spread: | Treasuries plus 425 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Jan. 2, 2030, then a par call
|
| Price guidance: | Treasuries plus 450 bps area
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | April 2, 2050
|
| Coupon: | 5.282%
|
| Price: | Par
|
| Yield: | 5.282%
|
| Spread: | Treasuries plus 400 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Oct. 2, 2049, then a par call
|
| Price guidance: | Treasuries plus 450 bps area
|
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