Philip Morris to sell add-on, fungible notes in four tranches

By Mary-Katherine Stinson

Lexington, Ky., April 27 – Philip Morris International Inc. will sell additional 4.875% three-year notes, 4.875% five-year notes, 5.125% seven-year notes and 5.375% 10-year notes, according to a 424B2 filing with the Securities and Exchange Commission.

Each tranche of notes will be fully fungible with and form a single series with existing notes issued Feb. 15.

The 2026 notes have a make-whole call option.

The 2028 notes feature a make-whole call until Jan. 15, 2028, one month before their maturity date, and a par call after.

The 2030 notes feature a make-whole call until Dec. 15, 2029, two months before their maturity date, and a par call after.

Finally, the 2033 notes feature a make-whole call until Nov. 15, 2032, three months before their maturity date, and a par call after.

BBVA Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC, Commerz Markets LLC and Santander US Capital Markets LLC are the joint bookrunners.

HSBC Bank USA, NA is the trustee.

DLA Piper LLP (US) and Eversheds Sutherland (US) LLP are acting as counsel for Philip Morris. Simpson Thacher & Bartlett LLP will represent the underwriters.

Proceeds will be used to pay the remaining cash consideration due on the company’s Altria agreement for IQOS commercialization rights, for general corporate purposes, to repay outstanding commercial paper or to meet working capital requirements.

The cigarette and tobacco company is based in Stamford, Conn.

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