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.