British American Tobacco successfully repurchases euro bonds, plans full redemption
British American Tobacco said Wednesday it will buy back €806.8 million of its euro-denominated bonds after a successful tender offer, and plans to redeem the remaining securities.
The company accepted all validly tendered securities from its outstanding €1 billion perpetual subordinated bond issue, according to a statement.
Holders who tendered their securities will receive 100.375% of the principal amount, plus accrued interest, with the settlement expected on Oct. 31.
The repurchase exceeded a 75% threshold, which gives the company the option to redeem the remaining €193.2 million in outstanding bonds.
The maker of Lucky Strike cigarettes said it intends to exercise this option following the settlement.
The tender offer, launched on Oct. 21, was intended to proactively manage the company's hybrid capital portfolio, according to a previous filing.
The move comes after the company announced the departure of its chief financial officer on the same day the offer was launched.
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