R.J. Reynolds to price $500 million two-part note offering this week

By Paul A. Harris

St. Louis, June 21 - R.J. Reynolds Tobacco Holdings, Inc. plans to price a $500 million two-part offering of high-yield bonds (Ba2/BB+) during the present week, according to a market source.

Citigroup and JP Morgan are joint bookrunners for the Rule 144A/Regulation S offering, which has registration rights.

The Winston-Salem, N.C.-based tobacco company plans to sell senior secured notes with five-year and 10-year maturities.

The notes will be guaranteed by Reynolds American Inc. and by certain direct and indirect subsidiaries of R.J. Reynolds Tobacco Holdings, Inc.

Proceeds will be used to fund the company's tender for its 7¾% notes due May 2006.

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