8-KRegulation FDOther EventsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Regulation FD Disclosure (Oct 28, 2013)

Filed October 28, 2013For Securities:MO

Summary

Altria Group, Inc. (MO) announced on October 28, 2013, a significant capital markets transaction involving its outstanding senior unsecured notes. The company has initiated a cash tender offer to repurchase up to $2.0 billion of these notes. Concurrently, Altria is undertaking an underwritten public offering of new senior unsecured notes, indicating a strategic refinancing or restructuring of its debt obligations. This move is expected to result in a one-time, pre-tax charge of approximately $1.1 billion, or $0.35 per share, recorded in the fourth quarter of 2013. This charge relates to the estimated loss on the early extinguishment of debt. Consequently, Altria has revised its full-year 2013 reported diluted EPS guidance downwards to a range of $2.22 to $2.27, from the previously projected $2.57 to $2.62. Despite this charge, the company anticipates adjusted diluted EPS growth of 7% to 9% for the full year 2013 compared to 2012.

Key Highlights

  • 1Commenced a cash tender offer to repurchase up to $2.0 billion of senior unsecured notes.
  • 2Simultaneously launched an underwritten public offering of new senior unsecured notes.
  • 3Expects a one-time pre-tax charge of approximately $1.1 billion ($0.35 per share) in Q4 2013 related to debt extinguishment.
  • 4Revised 2013 full-year reported diluted EPS guidance downwards to $2.22-$2.27 from $2.57-$2.62.
  • 5Maintained positive outlook on adjusted diluted EPS growth, expecting 7%-9% for full-year 2013.
  • 6The press release is incorporated by reference, with specific sections on guidance furnished under Regulation FD.

Frequently Asked Questions

Altria announced it is commencing a cash tender offer to buy back up to $2.0 billion of its existing senior unsecured notes and is also issuing new senior unsecured notes. This indicates a debt management and refinancing strategy.

Altria expects to record a significant one-time pre-tax charge of approximately $1.1 billion (or $0.35 per share) in the fourth quarter of 2013. This charge is due to the estimated loss from the early repayment of debt. As a result, the company has lowered its full-year 2013 reported diluted EPS guidance.

Altria has revised its 2013 full-year reported diluted EPS guidance to a range of $2.22 to $2.27, down from the previously expected $2.57 to $2.62, reflecting the impact of the debt extinguishment charge.

Yes, Altria expects its adjusted diluted EPS (which excludes certain items like the debt extinguishment charge) to grow between 7% and 9% for the full year 2013, compared to its 2012 adjusted diluted EPS. This suggests that the core business operations are performing well.