Hunton Andrews Kurth Advises Altria Group, Inc. in €4.25 Billion and $11.5 Billion Notes Offerings

Hunton Andrews Kurth LLP recently advised long-term client Altria Group, Inc. (Altria) in two investment grade shelf offerings of €4.25 billion and $11.5 billion aggregate principal amount of senior notes. Both issuances are guaranteed by Altria’s wholly-owned subsidiary, Philip Morris USA Inc., and J.P. Morgan served as the Global Coordinator for the underwriting syndicates of both offerings.

The Euro-denominated offering included €1.25 billion aggregate principal amount of 1.000% senior notes due 2023, €750 million aggregate principal amount of 1.700% senior notes due 2025, €1 billion aggregate principal amount of 2.200% senior notes due 2027 and €1.25 billion aggregate principal amount of senior notes due 2031. The US dollar-denominated offering included $1 billion aggregate principal amount of 3.490% senior notes due 2022, $1 billion aggregate principal amount of 3.800% senior notes due 2024, $1.5 billion aggregate principal amount of 4.400% senior notes due 2026, $3 billion aggregate principal amount of 4.800% senior notes due 2029, $2 billion aggregate principal amount of 5.800% senior notes due 2039, $2.5 billion aggregate principal amount of 5.950% senior notes due 2049 and $500 million aggregate principal amount of senior notes due 2059.

Proceeds from the offerings were used to prepay outstanding borrowings in connection with Altria’s 2018 minority investment in Juul Labs Inc., the US leader in e-vapor. Remaining proceeds from the US dollar-denominated offering were used to finance its investment in Cronos Group Inc., a leading cannabinoid company headquartered in Toronto, Canada, which closed on March 8, 2019.

The Hunton Andrews Kurth team advising Altria in both offerings was led by Susan S. Failla. Other team members included corporate partner Lawton B. Way and associates Mayme Beth F. Donohue and Shelby Stanton.