Tobacco.org

Reynolds American Inc. Announces Pricing of $1.65 Billion Debt Offering 

Reynolds American Inc. (NYSE: RAI) announced today the pricing of $625 million of its 7 1/4% Senior Secured Notes due 2013, $775 million of its 7 5/8% Senior Secured Notes due 2016, and $250 million of its 7 3/4% Senior Secured Notes due 2018 (collectively, the "Notes") offered in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.

RAI intends to use the net proceeds from this offering, together with available cash and borrowings under a new senior secured term loan facility, to finance its previously announced acquisition of a to-be-formed holding company that will own Conwood Company, L.P., Conwood Sales Co., L.P., Rosswil LLC and Scott Tobacco LLC (collectively, "Conwood"). Conwood is the second- largest manufacturer of smokeless tobacco products in the U.S.

Jump to full article »