8-KOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Corporate Update (May 2, 2013)

Filed May 2, 2013For Securities:MO

Summary

Altria Group, Inc. (MO) filed an 8-K report on May 2, 2013, detailing its issuance of $1 billion in aggregate principal amount of senior unsecured notes. This issuance comprised $350 million of 2.950% Notes due 2023 and $650 million of 4.500% Notes due 2043. The notes are guaranteed by its wholly-owned subsidiary, Philip Morris USA Inc. (PM USA), and rank equally with other senior unsecured indebtedness of both entities. This move represents a significant debt financing for Altria, aimed at raising capital with specific maturity dates and coupon rates. The details of the offering were established through a Terms Agreement with several underwriters, referencing an existing Underwriting Agreement. Investors should note that this filing primarily concerns the debt issuance and does not contain new financial performance data, but rather provides transparency on the company's capital structure management.

Key Highlights

  • 1Altria Group, Inc. issued $1 billion in aggregate principal amount of senior unsecured notes.
  • 2The issuance includes $350 million of 2.950% Notes due 2023.
  • 3The issuance also includes $650 million of 4.500% Notes due 2043.
  • 4All notes are guaranteed by Altria's subsidiary, Philip Morris USA Inc.
  • 5The notes rank as senior unsecured obligations, on par with existing and future senior unsecured debt.
  • 6The financing was conducted under a Terms Agreement with various underwriters.
  • 7Interest payments are scheduled semiannually on May 2 and November 2.

Frequently Asked Questions

This 8-K filing is to report on a material event, specifically Altria Group, Inc.'s issuance of $1 billion in new debt through two series of senior unsecured notes.

This issuance increases Altria's total debt and its interest expense. The capital raised is for general corporate purposes, and the company is taking on new long-term obligations with defined interest rates and maturity dates, impacting its capital structure.

The notes are senior unsecured obligations of Altria Group, Inc. and are guaranteed by PM USA as senior unsecured obligations. They rank equally with other senior unsecured indebtedness.

The 2023 Notes have a principal amount of $350 million, a coupon rate of 2.950%, and mature on May 2, 2023. The 2043 Notes have a principal amount of $650 million, a coupon rate of 4.500%, and mature on May 2, 2043.