By Devika Patel and Cristal Cody
Tupelo, Miss., Feb. 16 – Philip Morris International Inc. provided further details about $2.8 billion of notes (A2/A/A) that priced in four tranches on Wednesday in an FWP filed Thursday with the Securities and Exchange Commission.
The company initially planned to price two fixed-rate tranches and one floating-rate tranche.
Philip Morris sold $700 million of 1.625% two-year notes at a spread of Treasuries plus 50 basis points, tighter than initial price thoughts in the Treasuries plus 70 bps area.
The two-year notes priced at 99.746 to yield 1.755%. The notes feature a make-whole call at Treasuries plus 10 bps, which may be exercised at any time.
The company priced $300 million of three-year non-callable floating-rate notes at par to yield Libor plus 42 bps. Initial price thoughts on the floaters was in the Libor plus 57 bps area.
A $1 billion tranche of 2% three-year notes priced at a spread of 65 bps over Treasuries, tighter than initial price thoughts in the 80 bps area. These notes priced at 99.388 to yield 2.212%. The notes feature a make-whole call at Treasuries plus 10 bps, which may be exercised at any time.
Philip Morris brought $500 million of 2.625% five-year notes at Treasuries plus 75 bps, compared to initial price thoughts in the 90 bps area. These notes priced at 99.416 to yield 2.751%. The notes feature a make-whole call at Treasuries plus 12.5 bps until Jan. 18, 2022 and are then callable at par.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the active managers. BNP Paribas Securities Corp. and ING Financial Markets LLC were passive bookrunners.
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%
|
| Price: | 99.746
|
| Yield: | 1.755%
|
| Spread: | Treasuries plus 50 bps
|
| Initial price thoughts: | Treasuries plus 70 bps area
|
| Call feature: | Make-whole call at Treasuries plus 10 bps at any time
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | Feb. 21, 2020
|
| Coupon: | Libor plus 42 bps
|
| Price: | Par
|
| Yield: | Libor plus 42 bps
|
| Initial price thoughts: | Libor plus 57 bps area
|
| Call feature: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 21, 2020
|
| Coupon: | 2%
|
| Price: | 99.388
|
| Yield: | 2.212%
|
| Spread: | Treasuries plus 65 bps
|
| Initial price thoughts: | Treasuries plus 80 bps area
|
| Call feature: | Make-whole call at Treasuries plus 10 bps at any time
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 18, 2022
|
| Coupon: | 2.625%
|
| Price: | 99.416
|
| Yield: | 2.751%
|
| Spread: | Treasuries plus 75 bps
|
| Initial price thoughts: | Treasuries plus 90 bps area
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps until Jan. 18, 2022 and then a par call
|
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