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Altria to tap European bond market to help fund Juul stake buy

Reuters 

(Reuters) - Group will tap the European investment grade corporate market to help finance its $12.8 billion purchase of a stake in Labs Inc, the maker said in a regulatory filing on Monday.

The company said it would issue the bonds in four tranches in denominations of 100,000 euros as it looks to prepay a term loan arranged by to fund the deal. That loan matures on Dec. 19, 2019.

The four-year is expected to price at 110 to 115 basis points above the midswaps rate, according to pricing guidance published by Refinitiv's IFR.

Altria's deal for a 35 percent stake in the Juul, along with a stake buy in Canadian cannabis company in December last year, roughly doubled the company's total debt.

The sharp increase in leverage was among the reasons behind rating agencies and Fitch's two-notch downgrades of Altria's credit rating in December.

(Reporting by in Bengaluru; Editing by Sriraj Kalluvila)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 11 2019. 22:22 IST
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