Summary
Altria Group, Inc. (MO), through its wholly-owned subsidiary Philip Morris International Inc. (PMI), has entered into a significant credit agreement. This agreement establishes a EUR 2.0 billion senior unsecured 5-year revolving credit facility and a EUR 2.5 billion senior unsecured 3-year term facility. These facilities, which are not guaranteed by Altria itself, are intended for general corporate purposes, notably including the acquisition of PT HM Sampoerna Tbk. The credit agreement includes standard covenants, such as an EBITDA to interest ratio requirement, and outlines customary events of default and remedies. On May 18, 2005, a PMI subsidiary, FTR Holding S.A., drew down the full EUR 2.5 billion from the term facility. Investors should note that this filing primarily details the terms of the financing arrangement rather than providing financial performance updates. The associated credit agreement contains standard clauses for such facilities and details the relationships between some lenders and Altria and its subsidiaries.
Key Highlights
- 1Philip Morris International (PMI), a subsidiary of Altria, secured a EUR 2.0 billion revolving credit facility expiring May 2010.
- 2PMI also secured a EUR 2.5 billion term loan facility expiring May 2008.
- 3The facilities are unsecured and not guaranteed by Altria Group, Inc.
- 4Proceeds from these facilities are earmarked for general corporate purposes, including the acquisition of PT HM Sampoerna Tbk.
- 5FTR Holding S.A., a PMI subsidiary, drew down the full EUR 2.5 billion term loan on May 18, 2005.
- 6The credit agreement includes financial covenants, such as a minimum EBITDA to interest ratio of 3.5 to 1.
- 7Customary events of default and remedies are detailed within the agreement.