Summary
Philip Morris International Inc. (PMI) announced on September 7, 2023, the successful issuance of $2.35 billion in aggregate principal amount of senior unsecured notes across three tranches: $650 million of 5.250% Notes due 2028, $700 million of 5.500% Notes due 2030, and $1.0 billion of 5.625% Notes due 2033. These notes were issued under an existing indenture and a recently entered Terms Agreement with several underwriters. The company has filed a Prospectus Supplement detailing the terms of this offering with the SEC.
Key Highlights
- 1PMI successfully raised $2.35 billion through the issuance of senior unsecured notes.
- 2The notes are issued in three tranches with varying maturity dates: 2028, 2030, and 2033.
- 3The coupon rates for the notes range from 5.250% to 5.625%.
- 4Proceeds from the offering are intended for general corporate purposes, including repaying commercial paper and meeting working capital requirements.
- 5The notes are subject to customary covenants, including limitations on incurring secured debt and engaging in sale/leaseback transactions.
- 6PMI retains the option to redeem the notes under specific conditions, including tax events.
- 7The issuance of these notes adds to PMI's existing senior unsecured indebtedness and ranks equally with them.
Frequently Asked Questions
Philip Morris International Inc. raised a total of $2.35 billion from the issuance of its senior unsecured notes.
The net proceeds are intended to be added to PMI's general funds and may be used for general corporate purposes, to repay outstanding commercial paper, or to meet working capital requirements.
The new notes have the following terms: $650 million of 5.250% Notes due 2028, $700 million of 5.500% Notes due 2030, and $1.0 billion of 5.625% Notes due 2033.
The notes are senior unsecured obligations of PMI and rank equally in right of payment with all of its existing and future senior unsecured indebtedness.