Summary
Philip Morris International Inc. (PMI) announced on February 12, 2013, that it entered into a new senior unsecured revolving credit facility totaling US$2 billion, with an expiration date of February 11, 2014. This facility is intended for general corporate purposes, providing PMI with significant financial flexibility for its operational needs. The agreement includes a financial covenant requiring PMI to maintain an EBITDA to interest ratio of at least 3.5 to 1.0. The filing also details customary events of default and their consequences, such as the potential acceleration of loans and termination of commitments, particularly in cases of bankruptcy or insolvency. Investors should note that some lenders and their affiliates have existing financial relationships with PMI, including investment banking and financial services.
Key Highlights
- 1Philip Morris International Inc. secured a new US$2 billion senior unsecured revolving credit facility.
- 2The credit facility has a maturity date of February 11, 2014.
- 3Funds from the facility are designated for general corporate purposes.
- 4A key financial covenant requires an EBITDA to interest ratio of not less than 3.5 to 1.0.
- 5The agreement includes standard events of default, with potential for loan acceleration.
- 6Some lenders and their affiliates have existing financial services relationships with PMI.
- 7The credit agreement was entered into on February 12, 2013.