Reynolds American seeks $550 million amended and restated revolver, plans term loan repayment

By Sara Rosenberg

New York, June 18 - Reynolds American Inc. is currently syndicating a $550 million amended and restated senior secured revolving credit facility, according to a 424B5 filed with the Securities and Exchange Commission on Monday.

In addition, the company is planning on prepaying in full its $1.54 billion term loan using proceeds from the sale of floating-rate senior secured notes and senior secured notes.

The terms of the amended revolver will be similar to those of the existing revolver, except that certain covenants are expected to be less restrictive, pricing is expected to be lower and the maturity is expected to be about one year later.

Closing of the amended revolver is expected to occur in June or during the third quarter.

Reynolds American is a Winston-Salem, N.C.-based manufacturer and marketer of cigarettes and other tobacco products.

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