Vector weighs its options in regards to convertibles due April 2020

By Devika Patel

Knoxville, Tenn., June 17 – Vector Group Ltd. is considering its choices on how to approach the company’s convertible notes due April 2020 and should have a game plan within nine months.

“We have net of a $232 million issuance related to our convertible notes that is due in April of 2020,” senior vice president, treasurer and chief financial officer Bryant Kirkland said at the Oppenheimer 19th Annual Consumer Conference in Boston on Wednesday.

“We’ll consider how we’re going to address that over the next six months to nine months,” he said.

He said the company was in compliance with all covenants based on the 6 1/8% notes due 2025 and the 10˝% notes due 2026.

At the end of the first quarter, the company’s leverage ratio was 2.77x.

As of March 31, the company had $567 million of cash and marketable securities and long-term investments.

Vector Group is a Miami-based holding company engaged in the manufacture and sale of cigarettes in the United States through subsidiaries Liggett Group LLC and Vector Tobacco, as well as real estate operations conducted through New Valley LLC.

© 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.