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ALTRIA GROUP, INC. 8-K Report, Material Agreement (Aug 17, 2022)

Reports
Material Agreements·Exhibits & Filings
Filing Date
Filed August 17, 2022
Period End
August 17, 2022
Security
MO
In the record · 2016–202610-K2110-Q328-K143

MO filed 21 annual reports (10-K), 32 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’16Oct ’16
  2. Leadership change8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed August 17, 2022. Cited figures are marked; the original filing is the authoritative source.

Altria Group, Inc. (MO) has executed an amendment to its $3.0 billiona senior unsecured revolving credit agreement.

This amendment primarily extends the maturity date of the credit facility by one year, pushing it from August 1, 2024, to August 1, 2025. This extension provides Altria with continued access to a significant source of liquidity for an extended period. Additionally, the amendment updates the benchmark interest rate to one based on Term SOFR and incorporates other standard market updates.

The core terms of the credit agreement remain unchanged, and existing relationships with lenders for financial services continue. Investors should view this as a routine operational update that reinforces the company's financial flexibility.

02—Key points

Key Highlights

  1. Extension of $3.0 billion revolving credit agreement maturity date by one year to August 1, 2025.
  2. The amendment ensures continued access to a significant liquidity source for Altria.
  3. Update to Term SOFR as the new benchmark interest rate.
  4. All other terms and conditions of the original Credit Agreement remain in full force.
  5. This is a routine amendment to maintain financial flexibility and adapt to market standards.
  6. The company had previously amended and extended this credit facility.
  7. No new material financial obligations or changes to existing debt structure beyond the extension and rate update.

03—Questions

Frequently Asked Questions

  1. What is the main impact of this 8-K filing for Altria investors?

    The primary impact for investors is the extension of Altria's $3.0 billion revolving credit facility's maturity date by one year, to August 1, 2025. This demonstrates continued access to significant liquidity and provides financial flexibility for the company.

  2. Has Altria taken on new debt or significantly changed its borrowing costs?

    No, this filing primarily concerns an extension of an existing credit facility, not the incurrence of new debt. The interest rate benchmark has been updated to Term SOFR, which is a market standard, and other terms remain in effect. This is an operational adjustment rather than a change in its overall debt strategy or cost structure.

  3. What does 'Term SOFR' mean in this context?

    Term SOFR (Secured Overnight Financing Rate) is a benchmark interest rate that is replacing LIBOR. Updating to Term SOFR is a common practice in credit agreements to align with evolving financial market standards and regulatory changes, ensuring the credit facility remains current.

  4. Are there any concerns related to the lenders involved?

    The filing notes that some lenders and their affiliates provide various financial services to Altria, which is typical. There are no indications of any issues or changes in these relationships presented in this filing; it's standard practice for large corporations to have multiple banking relationships.

04—Continue

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