By Andrea Heisinger
New York, May 10 - Philip Morris International Inc. sold $1 billion of senior notes (A2/A/A) in two parts on Tuesday, said a source away from the deal.
The $650 million of 2.5% five-year notes priced at 99.316 to yield 2.647% with a spread of Treasuries plus 75 basis points. The notes were sold in line with talk in the 75 bps area.
A $350 million tranche of 4.125% 10-year notes sold at 99.433 to yield 4.195% with a spread of 100 bps over Treasuries. The notes priced at the wide end of guidance, which was in the range of 95 bps to 100 bps over Treasuries.
Both tranches are non-callable.
Bookrunners were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBS Securities Inc.
Banca ImI SpA, Barclays Capital Inc., Goldman Sachs & Co., ING Financial Markets and Santander Investment Securities Inc. were the co-managers.
Proceeds will be added to the company's general funds and used for general corporate purposes.
The holding company for cigarette and tobacco subsidiaries is based in New York City.
| Issuer: | Philip Morris International Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Co-managers: | Banca ImI SpA, Barclays Capital Inc., Goldman Sachs & Co., ING Financial Markets, Santander Investment Securities Inc.
|
| Trade date: | May 10
|
| Settlement date: | May 16
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | May 16, 2016
|
| Coupon: | 2.5%
|
| Price: | 99.316
|
| Yield: | 2.647%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Non-callable
|
| Price talk: | 75 bps area
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | May 17, 2021
|
| Coupon: | 4.125%
|
| Price: | 99.433
|
| Yield: | 4.195%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Non-callable
|
| Price talk: | 95 to 100 bps
|
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