By Andrea Heisinger
New York, Aug. 14 - Philip Morris International Inc. priced $2.25 billion of senior notes (A2/A/A) in three tranches on Tuesday, an informed source said.
A $750 million tranche of 1.125% five-year notes priced at 98.925 to yield 1.348% with a spread of Treasuries plus 60 basis points. The tranche priced in line with guidance in the 60 bps area.
The $750 million of 2.5% 10-year notes sold at 98.872 to yield 2.629% with a spread of 90 bps over Treasuries. The notes were priced tighter than guidance in the 95 bps area.
The third part was $750 million of 3.875% 30-year bonds priced at 97.588 to yield 4.014% with a spread of Treasuries plus 120 bps. The bonds priced in line with talk in the 120 bps area.
All of the tranches are non-callable.
Bookrunners were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBS Securities Inc.
Proceeds will be added to the company's general funds.
The producer of cigarette and tobacco products is based in New York City.
| Issuer: | Philip Morris International Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 21, 2017
|
| Coupon: | 1.125%
|
| Price: | 98.925
|
| Yield: | 1.348%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Non-callable
|
| Price talk: | 60 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 22, 2022
|
| Coupon: | 2.5%
|
| Price: | 98.872
|
| Yield: | 2.629%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Non-callable
|
| Price talk: | 95 bps area
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Aug. 21, 2042
|
| Coupon: | 3.875%
|
| Price: | 97.588
|
| Yield: | 4.014%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Non-callable
|
| Price talk: | 120 bps area
|
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