Published on 5/5/2020 in the Prospect News Investment Grade Daily.
New Issue: Altria prices $2 billion of notes due 2025, 2030 and 2050
By Rebecca Melvin
New York, May 5 – Altria Group Inc. sold $2 billion of guaranteed senior notes (A3/BBB/BBB) in three tranches, according to a final term sheet filed with the Securities and Exchange Commission on Monday.
The $750 million of 2.35% five-year notes priced at 99.958 to yield 2.359%, or 200 basis points over Treasuries. The 2025 notes have a make-whole call at Treasuries plus 30 bps until April 6, 2025 and then a par call.
The $750 million of 3.4% notes due 2030 priced at 99.689 to yield 3.437%, or 280 bps over Treasuries. The 2030 notes have a make-whole call at Treasuries plus 45 bps until Feb. 6, 2030 and then a par call.
The $500 million of 4.45% notes due 2050 priced at 99.198 to yield 4.499%, or a spread to Treasuries of 320 bps. The 2050 notes have a make-whole call at Treasuries pus 50 bps until Nov. 6, 2049, and then a par call.
Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. were the joint bookrunning managers.
The securities are guaranteed by Richmond, Va.-based parent Philip Morris USA Inc., a cigarette and smokeless tobacco product maker.
| Issuer: | Altria Group Inc.
|
| Guarantor: | Philip Morris USA Inc.
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| Amount: | $2 billion
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| Description: | Senior notes
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc.
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Santander Investment Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
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| Co-managers: | Banca IMI SpA, Loop Capital Markets LLC and Siebert Williams Shank & Co. LLC
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| Trade date: | May 4
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| Settlement date: | May 6
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| Ratings: | Moody’s: A3
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| 2025 notes
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| Amount: | $750 million
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| Maturity: | May 6, 2025
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| Coupon: | 2.35%
|
| Price: | 99.958
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| Yield: | 2.359%
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| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps before April 6, 2025, then callable at par
|
|
|
| 2030 notes
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| Amount: | $750 million
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| Maturity: | May 6, 2030
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| Coupon: | 3.4%
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| Price: | 99.689
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| Yield: | 3.437%
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| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps before Feb. 6, 2030, then callable at par
|
|
|
| 2050 notes
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| Amount: | $500 million
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| Maturity: | May 6, 2050
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| Coupon: | 4.45%
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| Price: | 99.198
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| Yield: | 4.499%
|
| Spread: | Treasuries plus 320 bps
|
| Calls: | Make-whole call at Treasuries plus 50 bps before Nov. 6, 2049, then callable at par
|
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