By Andrea Heisinger
New York, April 29 - Altria Group, Inc. priced $1 billion of senior notes (Baa1/BBB/BBB+) in two tranches during Monday's session, an informed source said.
There was $350 million of 2.95% 10-year notes priced at 99.845 to yield 2.968% with a spread of Treasuries plus 130 basis points. Guidance was in the 135 bps area, plus or minus 5 bps.
A $650 million tranche of 4.5% 30-year bonds sold at 99.397 to yield 4.537% with a spread of 165 bps over Treasuries. Talk was in the 165 bps area, plus or minus 5 bps.
Bookrunners were Barclays, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes.
The securities are guaranteed by Richmond, Va.-based parent Philip Morris USA Inc., a cigarette and smokeless tobacco product maker.
Altria last tapped the U.S. bond market with a $2.8 billion sale of notes in two tranches on Aug. 6, 2012. That offering included a 2.85% 10-year note priced at 130 bps over Treasuries and a 4.25% 30-year bond sold at Treasuries plus 168 bps.
| Issuer: | Altria Group, Inc.
|
| Guarantor: | Philip Morris USA Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | April 29
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | 2023
|
| Coupon: | 2.95%
|
| Price: | 99.845
|
| Yield: | 2.968%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | 130 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | 2043
|
| Coupon: | 4.5%
|
| Price: | 99.397
|
| Yield: | 4.537%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | 165 bps area, plus or minus 5 bps
|
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