Published on 10/30/2023 in the Prospect News Investment Grade Daily.
New Issue: Altria prices $1 billion of guaranteed notes in two tranches
By Wendy Van Sickle
Columbus, Ohio, Oct. 30 – Altria Group Inc. priced $1 billion of guaranteed notes (A3/BBB/BBB) in two parts due 2028 and 2033 on Monday, according to an FWP filed with the Securities and Exchange Commission.
The $500 million of 6.2% notes due 2028 priced at 99.801 to yield 6.247%, or 145 basis points over Treasuries.
The $500 million of 6.875% notes due 2033 priced at 99.736 to yield 6.912%, or 205 bps over Treasuries.
Barclays, Citigroup Global Markets Inc. and Mizuho Securities USA LLC were joint bookrunning managers of the registered deal.
Proceeds will be used for general corporate purposes, which may include repaying the company’s 4% and 3.8% notes due 2024.
The securities are guaranteed by Richmond, Va.-based parent Philip Morris USA Inc., a cigarette and smokeless tobacco product maker.
| Issuer: | Altria Group Inc.
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| Guarantor: | Philip Morris USA Inc.
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| Amount: | $1 billion
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| Issue: | Guaranteed notes
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| Bookrunners: | Barclays, Citigroup Global Markets Inc. and Mizuho Securities USA LLC
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| Senior co-managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
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| Co-managers: | Academy Securities Inc., CastleOak Securities, LP and R. Seelaus & Co., Inc.
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| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | McGuireWoods LLP and Eversheds Sutherland (US) LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Change-of control put: | At 101
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| Trade date: | Oct. 30
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| Settlement date: | Nov. 1
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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
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| 2028 notes
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| Amount: | $500 million
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| Maturity: | Nov. 1, 2028
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| Coupon: | 6.2%
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| Price: | 99.801
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| Yield: | 6.247%
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| Spread: | Treasuries plus 145 bps
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| Call: | Make-whole call at Treasuries plus 25 bps before Oct. 1, 2028, then callable at par
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| Cusip: | 02209SBQ5
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| 2033 notes
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| Amount: | $500 million
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| Maturity: | Nov. 1, 2033
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| Coupon: | 6.875%
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| Price: | 99.736
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| Yield: | 6.912%
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| Spread: | Treasuries plus 205 bps
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| Call: | Make-whole call at Treasuries plus 35 bps before Aug. 1, 2033, then callable at par
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| Cusip: | 02209SBR3
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