Reynolds American to redeem 7.3%, 7 5/8% notes via new offerings

By Tali David

Minneapolis, Sept. 12 - Reynolds American Inc. intends to repurchase the roughly $200 million outstanding amount of its 7.3% notes due 2015 and the roughly $775 million outstanding amount of its 7 5/8% notes due 2016 with the proceeds from two senior notes offerings, according to a 424B5 filed with the Securities and Exchange Commission.

Any remaining balance will be used to repay or prepay some or all of the $300 million current principal balance of the company's term loan and accrued interest, and for other general corporate purposes, which may include additional retirement of debt or contributions to pension plans.

Reynolds American is a Winston-Salem, N.C.-based manufacturer and seller of cigarettes and other tobacco products.

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