Philip Morris International Inc. (PM), the world’s largest publicly traded tobacco company, sold $2 billion of bonds in three parts in its second U.S. offering this year.
The company issued $750 million each of 1.875 percent bonds due January 2019 to yield 68 basis points more than similar-maturity Treasuries and 4.875 percent, 30-year securities at a 118 basis-point spread, according to data compiled by Bloomberg. It also sold $500 million of 3.6 percent, 10-year debt at a relative yield of 108 basis points. The offering, its first in dollars since February, is expected to be rated A2 by Moody’s Investors Service.
Credit Suisse Group AG, Citigroup Inc. and HSBC Holdings Plc managed the offering for the New York-based company, which split from Altria Group Inc. (MO) in 2008, Bloomberg data show. Proceeds will be used for general corporate purposes, including working capital, share repurchases and debt refinancing, according to a regulatory filing.
Altria, which still owns cigarette manufacturer Philip Morris USA Inc., issued $3.2 billion last week to help fund a tender offer, Bloomberg data show. The company sold $1.4 billion of 4 percent, 10-year notes and $1.8 billion of 5.375 percent, 30-year securities that are expected to be rated Baa1 by Moody’s.
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