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LONDON - British American Tobacco p.l.c. (NYSE:BTI) announced Friday that its wholly owned subsidiary, B.A.T Capital Corporation, has priced an offering of $750 million in senior notes with a 4.625% interest rate due in 2033.
The notes will be fully and unconditionally guaranteed on a senior and unsecured basis by British American Tobacco, B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V., and Reynolds American Inc., unless its guarantee is released under the terms of the indenture.
The transaction is expected to close on September 22, subject to customary closing conditions. The tobacco giant plans to use the net proceeds for general corporate purposes, including the potential repayment of existing debt.
Barclays Capital Inc., BBVA Securities Inc., Lloyds Securities Inc., and Santander US Capital Markets LLC are serving as joint book-running managers for the offering. Bank of China Limited, London Branch, Commerz Markets LLC, and SMBC Nikko Securities America, Inc. are acting as bookrunners.
The notes offering is being made under BAT’s existing shelf registration statement on file with the U.S. Securities and Exchange Commission. The company has filed a preliminary prospectus supplement and accompanying prospectus describing the terms of the offering.
British American Tobacco describes itself as a multi-category consumer goods business with a stated purpose of "Building a Smokeless World" through tobacco harm reduction. The company aims to have 50 million adult consumers of its smokeless products by 2030 and generate 50% of its revenue from these products by 2035.
This information is based on a press release statement from the company.
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