Summary
Philip Morris International Inc. (PM) filed an 8-K on May 9, 2016, to report the issuance of €500,000,000 aggregate principal amount of 2.000% Notes due 2036. This offering was conducted through a Terms Agreement with underwriters and was registered with the SEC via a Prospectus Supplement. The Notes are senior unsecured obligations, ranking equally with existing and future senior unsecured debt. Key terms for investors include the 2.000% annual interest rate, payable on May 9th, with the first payment due in 2017. The Notes mature on May 9, 2036. The issuance also carries customary covenants limiting PMI's ability to incur secured debt and engage in sale/leaseback transactions. The company retains the option to redeem the Notes under certain conditions, including at specific redemption prices or upon the occurrence of specified tax events, as detailed in the Prospectus Supplement.
Key Highlights
- 1Philip Morris International Inc. issued €500,000,000 in 2.000% Notes due 2036.
- 2The Notes are senior unsecured obligations, ranking pari passu with other senior unsecured debt.
- 3The issuance was completed through a Terms Agreement with named Underwriters.
- 4Interest is payable annually on May 9th, commencing May 9, 2017.
- 5The maturity date for these Notes is May 9, 2036.
- 6Customary covenants related to secured debt and sale/leaseback transactions are included.
- 7PMI has redemption options, including specific call prices and redemption upon certain tax events.