By Cristal Cody
Tupelo, Miss., Feb. 15 – Philip Morris International Inc. priced $2.8 billion of notes (A2/A/A) in four tranches on Wednesday, according to a market source.
The company initially planned to price two fixed-rate tranches and one floating-rate tranche, according to a 424B2 filing with the Securities and Exchange Commission.
Philip Morris sold $700 million of 1.625% notes due Feb. 21, 2019 at a spread of Treasuries plus 50 basis points.
The company priced $300 million of floating-rate notes due Feb. 21, 2020 at Libor plus 42 bps.
A $1 billion tranche of 2% notes due Feb. 21, 2020 priced at a spread of 65 bps over Treasuries.
Philip Morris brought $500 million of 2.625% notes due Feb. 18, 2022 at a Treasuries plus 75 bps spread.
The notes priced on the tight side of talk.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the active managers.
Proceeds will be used for general corporate purposes, to refinance debt, to meet working capital requirements or to repurchase common stock.
The producer of cigarette and tobacco products is based in New York.
| Issuer: | Philip Morris International Inc.
|
| Amount: | $2.8 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. (active); BNP Paribas Securities Corp. and ING Financial Markets LLC (passive)
|
| Trade date: | Feb. 15
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $700 million
|
| Maturity: | Feb. 21, 2019
|
| Coupon: | 1.625%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 55 bps area, plus or minus 5 bps
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | Feb. 21, 2020
|
| Coupon: | Libor plus 42 bps
|
| Price guidance: | Libor plus 57 bps area
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 21, 2020
|
| Coupon: | 2%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 18, 2022
|
| Coupon: | 2.625%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
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