Vector Group to sell $850 million eight-year secured notes; investor call Thursday morning

By Paul A. Harris

Portland, Ore., Jan. 18 – Vector Group Ltd. plans to sell $850 million of eight-year senior secured notes (existing ratings Ba3/BB-), according to an informed source.

The deal, via bookrunner Jefferies LLC, will be shopped by means of an investor conference call scheduled to get underway at 10:30 a.m. ET on Thursday and is set to price thereafter.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Miami-based holding company plans to use the proceeds, together with about $44 million of new common equity, to refinance its 7¾% notes due 2021 and for general corporate purposes.

Vector Group is engaged in the manufacturing and distribution of cigarettes in the United States and is active in the real estate market, including real estate brokerage and investment management services.

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