Summary
Philip Morris International Inc. (PMI) filed an 8-K on March 19, 2013, to report on the issuance of new debt. Specifically, PMI successfully issued €1,250,000,000 in aggregate principal amount of 1.750% Notes due 2020 and €750,000,000 in aggregate principal amount of 2.750% Notes due 2025. This debt issuance, totaling €2 billion, was made under an existing Indenture from 2008 and finalized through a Terms Agreement with several prominent underwriters on March 14, 2013. The company also filed a Prospectus Supplement related to this offering. These Notes represent senior unsecured obligations of PMI and will rank equally with existing and future senior unsecured indebtedness. The filing also notes customary covenants and provisions for redemption under specific tax events. The company's engagement with various financial institutions, including the underwriters, for these and other credit facilities highlights ongoing relationships within the financial markets.
Key Highlights
- 1Philip Morris International (PMI) issued €2 billion in new debt.
- 2The issuance consisted of €1.25 billion in 1.750% Notes due 2020 and €0.75 billion in 2.750% Notes due 2025.
- 3The debt was issued under an Indenture dated April 25, 2008.
- 4A Terms Agreement with multiple underwriters was entered into on March 14, 2013.
- 5The Notes are senior unsecured obligations of PMI.
- 6Customary covenants, including limitations on liens and sale/leaseback transactions, are in place.
- 7PMI may redeem the notes upon specified tax events.