British American Tobacco Raises USD6.25 Billion Via Debt Offering

(Alliance News) - Cigarettes and nicotine products maker British American Tobacco PLC on Friday ...

Alliance News 25 September, 2020 | 6:47AM
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(Alliance News) - Cigarettes and nicotine products maker British American Tobacco PLC on Friday said its subsidiary British American Tobacco International Finance PLC has priced an offering of USD6.25 billion debt securities, with proceeds going towards general corporate purposes.

British American Tobacco International Finance priced the offering of USD4.75 billion guaranteed debt securities consisting of USD1.75 billion 2.259% notes due in 2028; USD1.25 billion 2.726% notes due in 2031; USD750.0 million 3.734% notes due 2040; and USD1.00 billion 3.984% notes due in 2050.

In addition, the unit has priced an offering of USD1.50 billion 1.668% notes due in 2026.

Issuance of the notes is expected to close on Friday.

The company intends to use the proceeds for general corporate purposes, including debt refinancing.

Bookrunning managers include BofA Securities Inc, Deutsche Bank Securities Inc, Goldman Sachs & Co LLC, NatWest Markets Securities Inc, SG Americas Securities LLC and Wells Fargo Securities LLC.

British American Tobacco is down 20% in 2020 to date in London, last trading at 2,815 pence each on Thursday. The stock is up 1.5% in 2020 to date in Johannesburg, last trading at ZAR606.00 each on Wednesday.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
British American Tobacco PLC 2,733.50 GBX -0.24

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