By Aleesia Forni
Virginia Beach, Sept. 12 - Reynolds American Inc. sold a $1.1 billion two-part offering of senior notes due 2023 and 2043 on Thursday, according to a market source.
Both tranches priced at the tight end of talk.
There was a $550 million issue of 4.85% notes due 2023 sold with a spread of Treasuries plus 195 basis points.
The notes priced at 99.922 to yield 4.86%.
Reynolds also priced $550 million of 6.15% 30-year bonds at Treasuries plus 230 bps, or 99.553, to yield 6.183%.
Joint bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., Mizuho Securities, RBC Capital Markets and Scotiabank were passive bookrunners.
Proceeds will be used to redeem about $200 million of the company's 7.3% notes due 2015 and roughly $775 million of its 7.625% notes due 2016.
Any remaining proceeds will be used to repay or prepay the company's term loan and for other general corporate purposes.
The holding company for makers of tobacco products is based in Winston-Salem, N.C.
| Issuer: | Reynolds American Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Passive bookrunners: | Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., Mizuho Securities, RBC Capital Markets, Scotiabank
|
| Co-managers: | Wells Fargo Securities LLC, BNY Mellon, NTrust, PNC Capital Markets
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| 10-year notes
|
| Amount: | $550 million
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 4.85%
|
| Price: | 99.922
|
| Yield: | 4.86%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 200 bps area
|
| Make-whole call: | Treasuries plus 30 bps
|
|
|
| 30-year bond
|
| Amount: | $550 million
|
| Maturity: | Sept. 15, 2043
|
| Coupon: | 6.15%
|
| Price: | 99.553
|
| Yield: | 6.183%
|
| Spread: | Treasuries plus 230 bps
|
| Price talk: | Treasuries plus 235 bps area
|
| Make-whole call: | Treasuries plus 35 bps
|
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