By Devika Patel
Knoxville, Tenn., Feb. 13 – Altria Group Inc. offered further details about an $11.5 billion sale of senior notes (A3/BBB) that priced in seven tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1 billion of 3.49% three-year notes with a spread of 100 basis points over Treasuries. These notes priced at 99.994 to yield 3.492%.
A $1 billion tranche of 3.8% five-year notes was priced with a Treasuries plus 135 bps spread. These notes priced at 99.797 to yield 3.845%.
Altria sold $1.5 billion of 4.4% seven-year notes at a spread of 185 bps over Treasuries. These notes priced at 99.791 to yield 4.435%.
A $3 billion tranche of 4.8% 10-year notes was sold with a 215 bps over Treasuries spread. These notes priced at 99.717 to yield 4.836%.
The company placed $2 billion of 5.8% 20-year notes at a spread of 280 bps over Treasuries. These notes priced at 99.765 to yield 5.82%.
A $2.5 billion tranche of 5.95% 30-year notes was sold with a Treasuries plus 295 bps spread. These notes priced at 99.722 to yield 5.97%.
In the final slice, the company sold $500 million of 6.2% 40-year notes at a spread of 320 bps over Treasuries. These notes priced at 99.706 to yield 6.22%.
The notes priced on the tight side of guidance and better than initial talk.
The offering was upsized from an initially expected six-tranche deal.
Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Scotia Capital (USA) Inc. were the bookrunners.
The notes are guaranteed by Philip Morris USA Inc.
Proceeds will be used to prepay borrowings under the company’s term loan agreement and for general corporate purposes.
Altria also priced a €4.25 billion four-part offering of reverse Yankee bonds on Monday.
The Richmond, Va.-based company produces cigarette and tobacco products.
| Issuer: | Altria Group Inc.
|
| Guarantor: | Philip Morris USA Inc.
|
| Amount: | $11.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Scotia Capital (USA) Inc.
|
| Senior co-managers: | Morgan Stanley & Co. LLC, Santander Investment Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Telsey Advisory Group LLC
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody’s: A3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 14, 2022
|
| Coupon: | 3.49%
|
| Price: | 99.994
|
| Yield: | 3.492%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 130 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 14, 2024
|
| Coupon: | 3.8%
|
| Price: | 99.797
|
| Yield: | 3.845%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Jan. 14, 2024, then a par call
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 165 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 14, 2026
|
| Coupon: | 4.4%
|
| Price: | 99.791
|
| Yield: | 4.435%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 14, 2025, then a par call
|
| Price guidance: | Treasuries plus 190 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 215 bps area
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | Feb. 14, 2029
|
| Coupon: | 4.8%
|
| Price: | 99.717
|
| Yield: | 4.836%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Nov. 14, 2028, then a par call
|
| Price guidance: | Treasuries plus 220 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 235 bps area
|
|
|
| 20-year notes
|
| Amount: | $2 billion
|
| Maturity: | Feb. 14, 2039
|
| Coupon: | 5.8%
|
| Price: | 99.765
|
| Yield: | 5.82%
|
| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until Aug. 14, 2038, then a par call
|
| Price guidance: | Treasuries plus 285 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 300 bps area
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Feb. 14, 2049
|
| Coupon: | 5.95%
|
| Price: | 99.722
|
| Yield: | 5.97%
|
| Spread: | Treasuries plus 295 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps until Aug. 14, 2048, then a par call
|
| Price guidance: | Treasuries plus 300 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 315 bps area
|
|
|
| 40-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 14, 2059
|
| Coupon: | 6.2%
|
| Price: | 99.706
|
| Yield: | 6.22%
|
| Spread: | Treasuries plus 320 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 14, 2058, then a par call
|
| Price guidance: | Treasuries plus 325 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 345 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
