Lorillard prices offering of $1B in debt through Lorillard Tobacco Co.
By APWednesday, April 7, 2010
Lorillard prices offering of $1B in debt
GREENSBORO, N.C. — Lorillard Inc., the country’s third-largest cigarette company, said Wednesday that it priced a public offering of $1 billion of debt through its Lorillard Tobacco Co. subsidiary.
Lorillard, which holds about 35 percent of the U.S menthol market with its top-selling Newport brand, said the offering consists of $750 million worth of 6.875 percent senior notes due in 2020 and $250 million worth of 8.125 percent senior notes due in 2040. The offering is guaranteed by Lorillard.
The company thinks the note sale will close on April 12, and plans to put proceeds toward general corporate purposes like stock buybacks, acquisitions and capital expenditures.
Barclays Capital Inc., RBS Securities Inc., JP Morgan Securities Inc., Goldman, Sachs & Co. and Wells Fargo Securities, LLC are joint book-running managers.
