Philip Morris Sells EUR2 Billion, Two-Part Bond

By Ben Edwards

U.S. tobacco company Philip Morris International Inc. ( PM ) late Thursday priced a two-part bond, raising 2 billion euros ($2.59 billion), according to one of the banks running the deal.

Credit Suisse, JPMorgan and Royal Bank of Scotland were lead bookrunners of the sale, which has the following terms:

Seven-year bond

Amount:           EUR1.25 billion
Maturity:         March 19, 2020
Coupon:           1.75%
Reoffer Price:    99.356
Payment Date:     March 19, 2013
Spread:           55 basis points over midswaps
Yield:            1.849%

12-year bond

Amount:           EUR750 million
Maturity:         March 19, 2025
Coupon:           2.75%
Reoffer Price:    99.456
Payment Date:     March 19, 2013
Spread:           83 basis points over midswaps
Yield:            2.804%

Common terms

Debt Ratings:     A2 (Moody's)
                  A (Standard & Poor's)
                  A (Fitch)
Denominations:    EUR1,000; EUR100,000
Listing:          New York

Write to Ben Edwards at ben.edwards@dowjones.com

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