Reynolds American draws $750 million under revolving credit facility

By Marisa Wong

Madison, Wis., April 15 - Reynolds American Inc. borrowed $750 million under its $1.35 billion senior revolving credit agreement on April 9, according to an 8-K filing with the Securities and Exchange Commission.

The borrowed funds will bear interest initially at 1.46%. Pricing is based on the company's senior unsecured long-term debt rating.

Loans are to be repaid on the maturity date, currently Oct. 8, 2017. The maturity date may be extended in two separate one-year increments.

Proceeds of the borrowing will be used for general corporate purposes.

As previously announced, Reynolds entered into the credit agreement on Oct. 8, 2013 with JPMorgan Chase Bank, NA as administrative agent; Citibank, NA as syndication agent; J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA), LLC, Fifth Third Bank, Goldman Sachs Bank USA, Mizuho Bank, Ltd., RBC Capital Markets and Bank of Nova Scotia as joint lead arrangers and joint bookrunners; and Credit Suisse AG, Cayman Islands Branch, Fifth Third Bank, Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada and Bank of Nova Scotia as documentation agents.

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

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