Altria wraps, prices tender for $792.54 million 9.7% notes due 2018

By Susanna Moon

Chicago, March 5 – Altria Group, Inc. said investors had tendered $792,538,000 of its $1,656,182,000 of outstanding 9.7% senior notes due 2018 in the offer that ended at 5 p.m. ET on March 4.

The tendered amount includes $81,000 principal amount of notes that remain subject to guaranteed delivery procedures, according to a company press release.

The purchase price is $1,282.76 for each $1,000 principal amount.

Pricing was 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 bidside price of the reference security at 11 a.m. ET on March 4 plus a fixed spread of 65 basis points.

The reference yield was 1.065%.

Holders also will receive accrued interest up to but excluding the payment date of March 9.

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.

The offer began on Feb. 26.

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.