Summary
Philip Morris International Inc. (PMI) filed an 8-K report on August 11, 2015, to announce the issuance of $1.25 billion in new debt. Specifically, the company issued $500 million in 1.250% Notes due 2017 and $750 million in 3.375% Notes due 2025. These notes are senior unsecured obligations of PMI and rank equally with its existing and future senior unsecured indebtedness. The issuance was facilitated through a Terms Agreement with several underwriters and is in compliance with an existing Indenture from 2008. This debt issuance provides PMI with additional capital, the specific use of which is not detailed in this filing. Investors should note the new maturity dates and coupon rates, which will impact the company's future interest expense and cash flow obligations. The notes are subject to customary covenants, including limitations on secured debt and sale/leaseback transactions, and may be redeemed under specific conditions outlined in the prospectus supplement.
Key Highlights
- 1Philip Morris International Inc. issued US$500 million of 1.250% Notes due 2017.
- 2Philip Morris International Inc. issued US$750 million of 3.375% Notes due 2025.
- 3The total aggregate principal amount of the new notes issued is US$1.25 billion.
- 4The Notes are senior unsecured obligations, ranking equally with existing and future senior unsecured indebtedness.
- 5The issuance was conducted under an existing Indenture dated April 25, 2008.
- 6The Notes are subject to customary covenants, including limitations on secured debt and sale/leaseback transactions.
- 7PMI may redeem the Notes under specified conditions, including tax events.