Reynolds American borrows all $750 million of delayed-draw term loan

By Ashley Montgomery

Kansas City, Kan., April 12 - Reynolds American Inc. drew all $750 million under its delayed-draw term loan on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The company said it intends to use the funds for general corporate purposes, which may include repaying debt maturing in 2012, making payments to resolve some state health-care cost claims and funding the company's share repurchase program.

The term loan, which closed on Feb. 27, matures Dec. 28, 2012 and bears interest at 2%.

JPMorgan Chase Bank, NA is the administrative agent.

Reynolds American is a Winston-Salem, N.C.-based manufacturer and seller of cigarettes and other tobacco products.

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