What credit crunch?
From Phillip Morris International’s (PM) SEC Filing:
On November 17, 2008, Philip Morris International Inc. (the “Company”) issued $1,250,000,000 aggregate principal amount of its 6.875% Notes due 2014 (the “Notes”). The Notes were issued pursuant to an Indenture (the “Indenture”), dated as of April 25, 2008, by and between the Company and HSBC Bank USA, National Association, as trustee (the “Trustee”).
In connection with the issuance of the Notes, on November 12, 2008, the Company entered into a Terms Agreement (the “Terms Agreement”) with Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman, Sachs & Co., as representatives of the several underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to issue and sell the Notes to the Underwriters. The provisions of an Underwriting Agreement, dated as of April 25, 2008 (the “Underwriting Agreement”), are incorporated by reference in the Terms Agreement.
The Company has filed with the Securities and Exchange Commission a Prospectus, dated April 25, 2008, and a Prospectus Supplement (the “Prospectus Supplement”), dated November 12, 2008 (Registration No. 333-150449), in connection with the public offering of the Notes.
The Notes are subject to certain customary covenants, including limitations on the Company’s ability, with significant exceptions, to incur debt secured by liens and engage in sale and leaseback transactions. The Company may redeem all, but not part, of the Notes upon the occurrence of specified tax events as described in the Prospectus Supplement.
Interest on the Notes is payable semiannually on March 17 and September 17, commencing March 17, 2009, to holders of record on the preceding March 2 or September 2, as the case may be. Interest on the Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Notes will mature on March 17, 2014.
The Notes will be the Company’s senior unsecured obligations and will rank equally in right of payment with all of the Company’s existing and future senior unsecured indebtedness.
For a complete description of the terms and conditions of the Underwriting Agreement, the Terms Agreement and the Notes, please refer to such agreements and the form of Notes, each of which is incorporated herein by reference and attached to this report as Exhibits 1.1, 1.2 and 4.1, respectively.
The big deal here is the rate, 6.8%. In this environment that is fantastic. It also speaks volumes about the balance sheet of the company. Bigger still is the fact the notes are unsecured.
Disclosure (“none” means no position):Long PM
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2 replies on “Phillip Morris Issues $1.25 Billion in Notes”
So Todd… When are you going to be a man and own up to your ridiculous error believing that the Economy was NOT in a recession?
http://www.reuters.com/article/topNews/idUSTRE4AG54L20081117?feedType=RSS&feedName=topNews
4th Quarter GDP was -2.7 not 0.7. The recession started last April.
I have also noticed that you hammered Six Flags and was adamant that the management was horrible and attendance would most certainly fall along with revenues.
Looks like SIX is having one of the best years ever and attendance is up 8%. Granted the stock sucks as the debt is horrendous.. that had little to do with your analysis that focused mostly on your one-time trip to Six Flags that was horrible due the apparently overpriced parking and food that no one else seems to have an issue with.
It's sad how willing you are to write articles when you foolishly believe you are correct about something; yet, never take ownership over your inrealities.
To be an investor, Todd, you need to be rational and you need to learn from your mistakes. If you can't take ownership over that you are in no position to be giving advice to others. I recommend you stop this ridiculous blog.
Regards,
JD
JD…
been a while…
six flags…i said they were overpriced, had way to much debt and the experience was no fun…
http://valueplays.blogspot.com/2007/10/six-flags-ripoff.html
of course the stock is down 94% since then (think it was around $3.5?)……but yeah….I’m a dope..
Recession….you apparently have not been reading lately…..I have been saying since late summer we are in for a prolonged recession and housing will not recover probably until 2010….I think the exact quote was “at least a year”
From your linked article: “Although the U.S. economy contracted in third quarter, that followed two consecutive quarters of growth, albeit helped by government stimulus payments. The arbiter of U.S. business cycles has not yet declared the economy in recession.”
Did you think I would not read it? that being said, I have said plenty of time on the blog this fall what i fell will happen and recession is in the cards…
if you are going to criticize…at least keep up with the reading….it’ll actually have some use…
not bad though…over 3000 posts and you only have two gripes and one of them (six flags) we’ll, did you want a 98% stock price drop?
or are we just a bit bitter because we bought shares????