By Aleesia Forni
Virginia Beach, Aug. 4 – Philip Morris International Inc. sold an upsized $1.25 billion of senior notes (A2/A/A) in tranches due 2017 and 2025 on Tuesday, according to a market source.
The offering was upsized from $1 billion.
The company sold a $500 million tranche of 1.25% two-year notes with a spread of Treasuries plus 65 basis points.
Pricing was at the tight end of the Treasuries plus 65 bps to 70 bps guidance after having tightened from talk in the Treasuries plus 80 bps area.
Also, $750 million of 3.375% 10-year notes sold with a spread of 128 bps over Treasuries.
Guidance was set in the Treasuries plus 130 bps area, tightened from initial talk in the range of Treasuries plus 140 bps to 145 bps.
Barclays, BNP Paribas Securities Corp. and Societe Generale are the bookrunners.
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.
|
| Amount: | $1.25 billion, upsized from $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., Societe Generale
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 11, 2017
|
| Coupon: | 1.25%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 65 bps to 70 bps, tightened from Treasuries plus 80 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 11, 2025
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 128 bps
|
| Price guidance: | Treasuries plus 130 bps area, tightened from Treasuries plus 140 bps to 145 bps
|
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