Imperial Tobacco Markets Bonds in Europe as Borrowing Costs Fall

Source from:  Bloomberg News 02/26/2014

Imperial Tobacco Group Plc (IMT) is marketing bonds in Europe for the first time since 2011 after borrowing costs fell to the lowest in nine months.

Europe's second-biggest tobacco company is selling the equivalent of $3.1 billion of notes in euros and pounds, according to people familiar with the deals. The average yield on investment-grade bonds in euros fell to 1.89 percent, the lowest since May 30, according to Bank of America Merrill Lynch index data.

Imperial Tobacco is selling 1 billion euros ($1.4 billion) of seven-year bonds that will be priced to yield 95 basis points more than the mid-swap rate and 650 million euros of 12-year notes at a spread of 130 basis points, according to a person familiar with the matter. The Bristol, England-based company also plans to issue 500 million pounds ($834 million) of 18-year bonds to yield 155 basis points more than U.K. government debt, said the person, who asked not to be identified because they're not authorized to speak about it. Enditem