Summary
Philip Morris International Inc. (PMI) announced on November 2, 2017, the successful issuance of US$1.95 billion in aggregate principal amount of senior unsecured notes across three tranches: US$750 million of 1.875% Notes due 2019, US$750 million of 2.500% Notes due 2022, and US$500 million of 3.125% Notes due 2028. This offering provides PMI with additional capital, enhancing its financial flexibility. The issuance was executed under an existing Indenture and involved a Terms Agreement with several underwriters, with a Prospectus Supplement filed with the SEC detailing the offering terms. These notes are PMI's senior unsecured obligations, ranking equally with existing and future senior unsecured debt. The covenants include customary limitations on secured debt and sale/leaseback transactions. The company retains the option to redeem the notes under specified conditions, including potential tax events. Investors should note the differing interest payment schedules and maturity dates for each tranche, as well as the specific redemption prices outlined in the Prospectus Supplement.
Key Highlights
- 1PMI issued US$1.95 billion in senior unsecured notes across three tranches: 1.875% Notes due 2019 (US$750M), 2.500% Notes due 2022 (US$750M), and 3.125% Notes due 2028 (US$500M).
- 2The notes are senior unsecured obligations, ranking pari passu with existing and future senior unsecured indebtedness.
- 3The offering was conducted through a Terms Agreement with named underwriters, utilizing an existing Indenture and Prospectus Supplement.
- 4Customary covenants limiting PMI's ability to incur secured debt and engage in sale/leaseback transactions are in place.
- 5PMI has the option to redeem the notes, in whole or in part, at specified prices or upon the occurrence of certain tax events.
- 6The notes bear interest from November 2, 2017, with semi-annual payments on varying dates depending on the series.
- 7Maturity dates for the notes are November 1, 2019 (2019 Notes), November 2, 2022 (2022 Notes), and March 2, 2028 (2028 Notes).