Summary
Altria Group, Inc. (MO) filed an 8-K on January 31, 2019, detailing an amendment to its $3.0 billion senior unsecured revolving credit agreement. This amendment, effective upon the closing of its investment in Cronos Group Inc., incorporates covenants and default events specific to this investment, aligning them with the terms of its Term Loan Agreement. The Term Loan Agreement was previously established to fund both the Cronos Group and JUUL Labs investments. The filing also announces a key executive change: Steven D’Ambrosia has been elected as the new Vice President and Controller, effective upon the retirement of Ivan S. Feldman on April 30, 2019. D’Ambrosia, with extensive experience within Altria subsidiaries, will receive compensation and incentive awards consistent with his new role. Additionally, the report outlines the retirement arrangements for Craig A. Johnson, President and CEO of Altria Group Distribution Company, including pro-rated incentive payments, accelerated vesting of stock units, and a consulting agreement.
Key Highlights
- 1Amendment to $3.0 billion senior unsecured revolving credit agreement, effective upon Cronos Group investment closing.
- 2Credit agreement amendment introduces covenants and default events related to the Cronos Group investment.
- 3These new terms align with the existing Term Loan Agreement used to fund Cronos and JUUL investments.
- 4Steven D’Ambrosia appointed as Vice President and Controller, effective May 1, 2019, succeeding Ivan S. Feldman.
- 5D’Ambrosia's compensation package includes a base salary of $265,000 and standard incentive awards for his role.
- 6Craig A. Johnson, President and CEO of AGDC, to retire March 1, 2019, with pro-rated incentive payments and accelerated stock vesting.
- 7Johnson will provide consulting services post-retirement for $50,000 per month until December 31, 2019.