By Aleesia Forni
Virginia Beach, July 15 – Imperial Tobacco Group plc priced $4.5 billion of senior notes (Baa3/BBB) in four tranches on Wednesday, an informed source said.
A $500 million tranche of 2.05% three-year notes sold at Treasuries plus 120 basis points.
The issue was guided at the Treasuries plus 120 bps to 125 bps range after having firmed from Treasuries plus 135 bps to 140 bps.
The company also priced $1.25 billion of 2.95% five-year notes at 155 bps over Treasuries.
Pricing was at the tight end of the Treasuries plus 155 bps to 160 bps guidance. Initial talk was in the range of Treasuries plus 165 bps to 170 bps.
There was also a $1.25 billion 3.75% seven-year note sold with a spread of Treasuries plus 195 bps.
The tranche sold at the tight end of the Treasuries plus 195 bps to 200 bps guidance after having tightened from the Treasuries plus 205 bps area.
Finally, a $1.5 billion 4.25% 10-year note priced at 215 bps over Treasuries.
Guidance was in the range of Treasuries plus 215 bps to 220 bps. The notes were initially talked in the range of Treasuries plus 225 bps to 235 bps.
Proceeds will be used to finance the company’s acquisition of cigarette brands from Reynolds American Inc. and Lorillard Inc.
Bookrunners are BofA Merrill Lynch, BNP Paribas Securities Corp., HSBC Securities and Mizuho Securities.
The maker of cigarettes and tobacco products is based in Bristol, England.
| Issuer: | Imperial Tobacco Group plc
|
| Issue: | Senior notes
|
| Amount: | $4.5 billion
|
| Bookrunners: | BofA Merrill Lynch, BNP Paribas Securities Corp., HSBC Securities, Mizuho Securities
|
| Trade date: | July 15
|
| Settlement date: | July 21
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
| Distribution: | Rule 144A, Regulation S without registration rights
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | July 20, 2018
|
| Coupon: | 2.05%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 120 bps to 125 bps, tightened from Treasuries plus 135 bps to 140 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 21, 2020
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 155 bps to 160 bps, tightened from Treasuries plus 165 bps to 170 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 21, 2022
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 195 bps to 200 bps, tightened from Treasuries plus 205 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 21, 2025
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 215 bps
|
| Price guidance: | Treasuries plus 215 bps to 220 bps, tightened from Treasuries plus 225 bps to 235 bps
|
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