By Andrea Heisinger
New York, Feb. 5 - Imperial Tobacco Group plc sold $2.25 billion of notes (Baa3/BBB/) in two tranches on Tuesday, an informed source said.
The size was in line with the "roughly $2 billion" talked at midday.
The sale included $1.25 billion of 2.05% five-year notes sold at 99.91 to yield 2.069% with a spread of Treasuries plus 120 basis points. Pricing was at the low end of talk in the 120 bps to 125 bps range.
The tranche has a make-whole call at Treasuries plus 20 bps.
The second part was $1 billion of 3.5% 10-year notes priced at 99.9 to yield 3.512% with a spread of 150 bps over Treasuries. There was talk in the range of 150 bps to 155 bps, with pricing at the tight end.
There is a make-whole call at Treasuries plus 25 bps.
Pricing was done under Rule 144A and Regulation S.
Bookrunners were Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, including working capital, share repurchases and refinancing and to repay or repurchase debt.
The maker of cigarettes and tobacco products is based in Bristol, England.
| Issuer: | Imperial Tobacco Group plc
|
| Issue: | Notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 11, 2018
|
| Coupon: | 2.05%
|
| Price: | 99.91
|
| Yield: | 2.069%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 120 bps to 125 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 11, 2023
|
| Coupon: | 3.5%
|
| Price: | 99.9
|
| Yield: | 3.512%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps to 155 bps
|
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