By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Sept. 6 – Philip Morris International Inc. sold $2.35 billion of notes in three parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
The $650 million of 5.25% five-year notes priced at 99.191 to yield 5.437%, or at 105 basis points above Treasuries. The notes were talked in the 125 bps area.
The company also sold $700 million of 5.5% seven-year notes at 98.83 to yield 5.705%, or at Treasuries plus 135 bps. Price talk was in the 155 bps area.
Finally, the $1 billion of 5.625% 10-year notes priced at 98.137 to yield 5.874%, with a spread of 160 bps over Treasuries. Price talk had the tranche coming in the 180 bps area over Treasuries.
The 2028 notes feature a make-whole call option before Aug. 7, 2028 at Treasuries plus 20 bps and after at par.
Before June 7, 2033, both the 2030 and 2033 notes will be callable at a make-whole premium of Treasuries plus 25 bps, and after at par.
Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Standard Chartered Bank are working as bookrunners.
Proceeds will be used for general corporate purposes, to repay outstanding commercial paper and to meet working capital requirements.
The notes will not be listed.
The cigarette and tobacco company is based in Stamford, Conn.
| Issuer: | Philip Morris International Inc.
|
| Amount: | $2.35 billion
|
| Issue: | Notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Standard Chartered Bank
|
| Senior co-manager: | UBS Securities LLC
|
| Co-managers: | Bank of China (Europe) SA and Intesa Sanpaolo IMI Securities Corp.
|
| Trustee: | HSBC Bank USA, NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP and Eversheds Sutherland (US) LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 7
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
|
| Amount: | $650 million
|
| Maturity: | Sept. 7, 2028
|
| Coupon: | 5.25%
|
| Price: | 99.191
|
| Yield: | 5.437%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | At Treasuries plus 20 bps before Aug. 7, 2028; after at par
|
| Price talk: | Treasuries plus 125 bps area
|
| Cusip: | 718172DC0
|
|
|
| 2030 notes
|
| Amount: | $700 million
|
| Maturity: | Sept. 7, 2030
|
| Coupon: | 5.5%
|
| Price: | 98.83
|
| Yield: | 5.705%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | At Treasuries plus 25 bps before June 7, 2033; after at par
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 718172DD8
|
|
|
| 2033 notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 7, 2033
|
| Coupon: | 5.625%
|
| Price: | 98.137
|
| Yield: | 5.874%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | At Treasuries plus 25 bps before June 7, 2033; after at par
|
| Price talk: | Treasuries plus 180 bps area
|
| Cusip: | 718172DE6
|
|
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