British American Tobacco (BTI) said on Tuesday it priced a debt offering of $2.4 billion notes and intends to use the proceeds for general business purposes, including paying off upcoming maturities.
The maker of Lucky Strike and Dunhill cigarettes said it expected the issuance to close on April 2.
“COVID-19 is developing rapidly. We are fortunate that our business is resilient and is supported by a geographically diversified supply chain from both a manufacturing and distribution standpoint,” British American Tobacco Chief Executive Officer Jack Bowles said on March 18. “As yet, we have seen no material impact.”
With a Buy rating from two Wall Street analysts covering the company in the last three months, the stock is a Moderate Buy. The $50 average price target suggests a potential 51% upside in the share price in the next 12 months. (See British American Tobacco stock analysis on TipRanks)
The joint book-running managers for the proposed offering are Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC and Santander Investment Securities Inc.
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