MIAMI -- (Business Wire)
Vector Group Ltd. (NYSE: VGR) (“Vector” or the “Company”) announced
today that it has priced $450.0 million aggregate principal amount of
7.750% senior secured notes due 2021 (the “Notes”). The Notes will bear
interest at a rate of 7.750% per year, payable semi-annually in arrears
on February 15 and August 15 of each year, commencing on August 15,
2013. The Notes will mature on February 15, 2021, unless earlier
repurchased or redeemed in accordance with their terms. The Notes will
be fully and unconditionally guaranteed by all of the wholly owned
domestic subsidiaries of the Company that are engaged in the conduct of
the Company’s cigarette business. The guarantees provided by some of the
subsidiary guarantors will be secured by first priority or second
priority security interests in certain assets of such guarantors. The
offering is expected to close on February 12, 2013 subject to the
satisfaction of customary closing conditions.
The Company intends to use the net cash proceeds from this offering to
pay (i) the consideration for a cash tender offer for the Company’s 11%
senior secured notes due 2015 (the “Existing 11% Notes”), (ii) the
redemption price for any Existing 11% Notes that are not tendered in the
cash tender offer, plus accrued and unpaid interest, and (iii) any fees
and expenses in connection with the cash tender offer and any redemption
of the Existing 11% Notes. After such payments, the Company intends to
use any remaining net cash proceeds for general corporate purposes.
The Notes are being offered in a private offering that is exempt from
the registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”), to qualified institutional buyers in accordance
with Rule 144A under the Securities Act and to persons outside the
United States in compliance with Regulation S. The Notes will not
initially be registered under the Securities Act or any state securities
laws and may not be offered or sold in the United States absent an
effective registration statement or an applicable exemption from
registration requirements or in a transaction that is not subject to the
registration requirements of the Securities Act or any state securities
laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes or any other security, nor
will there be any offer, solicitation or sale of the Notes or any other
security in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The
Company has tried, whenever possible, to identify these forward-looking
statements using words such as “anticipates”, “believes”, “estimates”,
“expects”, “plans”, “intends” and similar expressions. These statements
reflect the Company’s current beliefs and are based upon information
currently available to it. Accordingly, such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
could cause the Company’s actual results, performance or achievements to
differ materially from those expressed in, or implied by, such
statements.
All information set forth in this press release is as of February 4,
2013. Vector does not intend, and undertakes no duty, to update this
information to reflect future events or circumstances. Risk factors and
uncertainties that may cause actual results to differ materially from
expected results include, among others, our ability to successfully
complete the proposed notes offering and tender offer.
Vector Group is a holding company that indirectly owns Liggett Group LLC
and Vector Tobacco Inc. and directly owns New Valley LLC.
Contacts:
Sard Verbinnen & Co
Paul Caminiti / Jonathan Doorley,
212-687-8080
Source: Vector Group Ltd.