Altria Group , Inc. (NYSE:MO), a prominent player in the tobacco industry with a market capitalization of $89 billion and impressive gross profit margins of 70%, has announced the issuance of $1 billion in senior unsecured notes, split evenly between two series with varying maturity dates. According to InvestingPro analysis, the company currently operates with a moderate level of debt while maintaining strong shareholder returns through consistent dividend payments. The company, known for its subsidiary Philip Morris (NYSE:PM) USA Inc., made the announcement today, revealing that $500 million in 4.875% notes will mature in 2028 and an equal amount of 5.625% notes will mature in 2035.
The newly issued notes, guaranteed by Philip Morris USA, are set to rank equally with Altria’s existing and future senior unsecured indebtedness. This guarantee is also in line with Philip Morris USA’s current and future senior unsecured obligations. With total debt of $24.9 billion and a current ratio of 0.51, InvestingPro data reveals the company’s careful balance of leverage and financial stability. For deeper insights into Altria’s debt structure and financial health metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The transaction was facilitated through a Terms Agreement with several underwriters, including Deutsche Bank (ETR:DBKGn) Securities Inc., Santander (BME:SAN) US Capital Markets LLC, Scotia Capital (USA) Inc., and Wells Fargo (NYSE:WFC) Securities, LLC. The agreement follows an Underwriting Agreement dated November 4, 2008.
Interest payments for the 2028 notes are scheduled semiannually starting August 4, 2025, with the first record date on January 20, 2025. Similarly, the 2035 notes will commence interest payments on August 6, 2025, with the initial record date set for January 22, 2025.
The offering of these notes was made under a Prospectus Supplement filed with the Securities and Exchange Commission on February 4, 2025, which complements a Prospectus dated October 26, 2023. Based on InvestingPro’s Fair Value analysis, Altria currently appears slightly undervalued, with strong fundamentals supported by 54 consecutive years of dividend payments and a robust financial health score.
The details of the Underwriting Agreement, Terms Agreement, Guarantee Agreements, and the form of the notes are available through the SEC filing and form part of the exhibits to the report. This move by Altria Group, Inc. is based on a press release statement and is intended to provide investors with the most relevant and factual information concerning the company’s financial activities.
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