Reynolds American Inc. Announces Pricing of $1.65 Billion Debt Offering
May 18 2006 - 7:38PM
PR Newswire (US)
WINSTON-SALEM, N.C., May 18 /PRNewswire-FirstCall/ -- 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. The Notes have not been and
will not be registered under the Securities Act or the securities
laws of any other jurisdiction. The Notes will be issued in
reliance upon exemptions from registration under the Securities
Act. The Notes may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state laws. This press release is neither an offer to sell nor the
solicitation of an offer to buy the Notes or any other securities
and shall not constitute an offer, solicitation or sale in any
jurisdiction in which, or to any person to whom, such an offer,
solicitation or sale is unlawful. ABOUT US Reynolds American Inc.
(NYSE:RAI) is the parent company of R.J. Reynolds Tobacco Company,
Santa Fe Natural Tobacco Company, Inc., Lane Limited and R.J.
Reynolds Global Products, Inc. R.J. Reynolds Tobacco Company, the
second- largest U.S. tobacco company, manufactures about one of
every three cigarettes sold in the country. The company's brands
include five of the 10 best-selling U.S. brands: Camel, Kool,
Winston, Salem and Doral. Santa Fe Natural Tobacco Company, Inc.
manufactures Natural American Spirit cigarettes and other tobacco
products for U.S. and international markets. Lane Limited
manufactures several roll-your-own, pipe tobacco and little cigar
brands, and distributes Dunhill tobacco products. R.J. Reynolds
Global Products, Inc. manufactures, sells and distributes
American-blend cigarettes and other tobacco products to a variety
of customers worldwide. Copies of RAI's news releases, annual
reports, SEC filings and other financial materials are available at
http://www.reynoldsamerican.com/. DATASOURCE: Reynolds American
Inc. CONTACT: Investor Relations, Ken Whitehurst, +1-336-741-0951,
or Media, Jan Smith, +1-336-741-6995, both of Reynolds American
Inc. Web site: http://www.reynoldsamerican.com/
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