Altria borrows entire $3 billion revolver to preserve flexibility

By Wendy Van Sickle

Columbus, Ohio, March 26 – Altria Group, Inc. drew down the entire $3 billion amount of its revolving credit facility with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Altria gave notice to borrow the funds on Monday.

Based on Altria’s current ratings, borrowings bear interest at Libor plus 100 basis points.

The revolver matures on Aug. 1, 2023.

Altria said that in light of the current uncertainty in the global capital markets, including the commercial paper market, resulting from the Covid-19 outbreak, it elected to borrow the entire amount available under the credit agreement as a precautionary measure to increase its cash position and preserve financial flexibility.

Altria intends to use a portion of the proceeds to help fund these payments and for other general corporate purposes.

The Richmond, Va.-based company produces cigarette and tobacco products.

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