Summary
Philip Morris International Inc. (PMI) announced on February 21, 2017, the successful issuance of $2.5 billion in aggregate principal amount of senior unsecured notes. This debt offering comprises several tranches with varying maturities and interest rates: $700 million of 1.625% Notes due 2019, $300 million of Floating Rate Notes due 2020, $1 billion of 2.000% Notes due 2020, and $500 million of 2.625% Notes due 2022. The issuance was facilitated through a Terms Agreement with several underwriters, and PMI has filed a prospectus and prospectus supplement with the SEC detailing the offering. These notes represent PMI's senior unsecured obligations and rank equally with its existing and future senior unsecured debt. The company has included customary covenants that limit its ability to incur secured debt and engage in certain sale/leaseback transactions. The proceeds from this issuance are expected to be used for general corporate purposes, providing PMI with additional financial flexibility. Investors should note the specific interest payment dates, redemption provisions, and maturity dates for each series of notes as outlined in the prospectus supplement.
Key Highlights
- 1PMI issued $2.5 billion in aggregate principal amount of senior unsecured notes.
- 2The notes are divided into four series: 1.625% Notes due 2019 ($700M), Floating Rate Notes due 2020 ($300M), 2.000% Notes due 2020 ($1B), and 2.625% Notes due 2022 ($500M).
- 3The issuance was completed on February 21, 2017, with a Terms Agreement signed on February 15, 2017.
- 4The notes rank as senior unsecured obligations of PMI and are on par with existing and future senior unsecured indebtedness.
- 5Customary covenants were included, limiting the incurrence of secured debt and sale/leaseback transactions.
- 6PMI has the option to redeem the notes under specific conditions, including certain tax events.
- 7Prospectus and Prospectus Supplement were filed with the SEC for the offering.