By Paul A. Harris
Portland, Ore., Jan. 19 – Vector Group Ltd. priced an $850 million issue of eight-year senior secured notes (Ba3/BB-) at par to yield 6 1/8% on Thursday, according to an informed source.
The yield came at the tight end of yield talk in the 6¼% area.
Jefferies LLC was the bookrunner.
The Miami-based holding company plans to use the proceeds, together with about $44 million of new common equity, to refinance its 7¾% notes due 2021 and for general corporate purposes.
Vector Group is engaged in the manufacturing and distribution of cigarettes in the United States and is active in the real estate market, including real estate brokerage and investment management services.
| Issuer: | Vector Group Ltd.
|
| Amount: | $850 million
|
| Maturity: | Feb. 1, 2025
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2020, then callable at 103.063
|
| Equity clawback: | 40% at 106.125 until Feb. 1, 2020
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 27
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% area
|
| Marketing: | Investor call (deal was announced on Jan. 18)
|
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