By Cristal Cody
Tupelo, Miss., July 23 – Imperial Brands Finance plc priced $2.75 billion of senior notes (Baa3/BBB) in three tranches on Tuesday, according to a market source.
The company sold $1 billion of 3.125% five-year notes with a spread of 140 basis points over Treasuries.
A $750 million tranche of 3.5% seven-year notes came at a Treasuries plus 170 bps spread.
The final $1 billion of 3.875% 10-year notes priced at a spread of 190 bps over Treasuries.
The notes were priced on the tight side of guidance.
Bookrunners were BofA Securities, Inc., Barclays, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and MUFG.
Imperial Brands Finance is a financing arm of Bristol, England-based tobacco company Imperial Brands plc.
| Issuer: | Imperial Brands Finance plc
|
| Amount: | $2.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Barclays, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and MUFG
|
| Trade date: | July 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 26, 2024
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 165 bps area
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | July 26, 2026
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 5 bps; initial talk at Treasuries plus 200 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 26, 2029
|
| Coupon: | 3.875%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps area, plus or minus 5 bps; initial talk at Treasuries plus 215 bps area
|
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