8-KOther EventsExhibits & Filings

Philip Morris International Inc. 8-K Report, Corporate Update (May 1, 2023)

Filed May 1, 2023For Securities:PM

Summary

Philip Morris International Inc. (PMI) announced the issuance of approximately $2.5 billion in new senior unsecured notes across four series: 4.875% Notes due 2026, 4.875% Notes due 2028, 5.125% Notes due 2030, and 5.375% Notes due 2033. These "Additional Notes" are fungible with previously issued notes and were sold through a Terms Agreement with several underwriters. The company intends to use the net proceeds for general corporate purposes, including potentially funding a portion of the cash consideration for its agreement with Altria Group, Inc., repaying commercial paper, or meeting working capital requirements. This debt issuance represents PMI's strategy to manage its capital structure and fund its ongoing business activities and strategic initiatives. Investors should note that these notes are senior unsecured obligations and rank equally with other unsecured indebtedness. The issuance provides PMI with significant liquidity, and the proceeds offer flexibility in how they are deployed, underscoring the company's proactive approach to financial management and its commitment to its strategic objectives.

Key Highlights

  • 1PMI issued approximately $2.5 billion in new senior unsecured notes across four tranches with varying maturities (2026, 2028, 2030, 2033) and coupon rates.
  • 2The new notes are fully fungible and form a single series with existing notes of the same maturity and coupon rate.
  • 3Net proceeds are intended for general corporate purposes, including funding the Altria Group acquisition, repaying commercial paper, and working capital needs.
  • 4The issuance was conducted under a Terms Agreement with multiple underwriters.
  • 5The Additional Notes are senior unsecured obligations and rank equally with PMI's other senior unsecured indebtedness.
  • 6The notes are subject to customary covenants, including limitations on secured debt and sale/leaseback transactions.
  • 7PMI has the option to redeem the notes, in whole or in part, under specific conditions, including tax events.

Frequently Asked Questions

Philip Morris International issued a total of $2.45 billion in new senior unsecured notes across four series: $450 million of 4.875% Notes due 2026, $550 million of 4.875% Notes due 2028, $700 million of 5.125% Notes due 2030, and $750 million of 5.375% Notes due 2033.

The company intends to add the net proceeds to its general funds. These funds may be used to pay a portion or all of the remaining cash consideration for its agreement with Altria Group, Inc., for general corporate purposes, to repay outstanding commercial paper, or to meet working capital requirements.

The Additional Notes are PMI's senior unsecured obligations and will rank equally in right of payment with all of its existing and future senior unsecured indebtedness. They are not secured by any specific assets.

Yes, for each maturity, the newly issued notes are a further issuance of, are fully fungible with, rank equally in right of payment with, and form a single series with the previously issued notes of the same maturity and coupon rate. They share the same CUSIP number as their corresponding existing notes.