Altria begins cash tender offer for $1.66 billion 9.7% notes due 2018

By Susanna Moon

Chicago, Feb. 26 – Altria Group, Inc. began a cash tender offer for its $1,656,182,000 of outstanding 9.7% senior notes due 2018, according to an 8-K filing with the Securities and Exchange Commission.

Pricing for each $1,000 principal amount will be set using a yield to maturity equal to the sum of the yield to maturity for the 1% U.S. Treasury note due Feb. 15, 2018, based on the bid-side price of the reference security at 11 a.m. ET on March 4 plus a fixed spread of 65 basis points.

Holders also will receive accrued interest up to but excluding the payment date, which will occur “promptly” after the offer ends, according to a company press release.

The tender offer will end at 5 p.m. ET on March 4.

Barclays (800 438-3242 or 212 528-7581 collect), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106 collect), J.P. Morgan Securities LLC (800 834-4666 toll-free) or (212 834-4811 collect) and Credit Suisse Securities (USA) LLC are the dealer managers.

Global Bondholder Services Corp. (banks and brokers, call collect 212 430-3774, all others call 866 470-3900) is the information agent and depositary.

Altria expects the tender offer to reduce ongoing interest expense, its weighted average coupon rate and debt scheduled to mature in the future, the release said.

Altria is a Richmond, Va.-based tobacco company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.