Lorillard Announces Offering of Debt Securities
GREENSBORO, N.C., Aug. 16, 2012 /PRNewswire/ -- Lorillard, Inc. (NYSE: LO), the third largest manufacturer of cigarettes in the United States, today announced that it has commenced an underwritten public offering of senior notes through its main operating subsidiary, Lorillard Tobacco Company, and guaranteed by Lorillard, Inc. The net proceeds from the offering will be used for general corporate purposes, which may include, among other things, the repurchase, redemption or retirement of securities including its common stock, acquisitions, additions to working capital and capital expenditures.
"With today's announced offering, we are pleased to take another significant step towards our objective of more effectively utilizing our balance sheet. Importantly, we are also happy to announce a change to our long-term leverage ratio target from 1.5 times gross debt to EBITDA to a range of 1.5 times up to 2.0 times gross debt to EBITDA," stated David H. Taylor, Executive Vice President, Finance and Planning, and Chief Financial Officer of Lorillard. "The increased leverage ratio target, which we would expect to reach over time, reflects our ongoing confidence in Lorillard's business and its strategic direction along with our continued commitment to stakeholders to most efficiently manage the company's financial resources while retaining a strong balance sheet that protects our investment grade ratings."
Barclays Capital Inc., J.P. Morgan Securities LLC, RBS Securities Inc., Fifth Third Securities, Inc., Goldman, Sachs & Co. and Wells Fargo Securities, LLC are acting as joint book-running managers.
Lorillard, Inc. and Lorillard Tobacco Company have filed a registration statement (including a prospectus) and a prospectus supplement with the Securities and Exchange Commission ("SEC") relating to the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other documents that Lorillard, Inc. has filed with the SEC for more complete information about Lorillard, Inc., Lorillard Tobacco Company and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, a copy of the prospectus supplement relating to the senior notes can be obtained by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling toll-free 1-888-603-5847, by contacting J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk – 3rd floor, or by calling 212-834-4533 or by contacting RBS Securities Inc., 600 Washington Boulevard, Stamford, CT 06901, Attention: Debt Capital Markets Syndicate, or by calling toll-free 1-866-884-2071.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About Lorillard, Inc.
Lorillard, Inc. (NYSE: LO), through its Lorillard Tobacco Company subsidiary, is the third largest manufacturer of cigarettes in the United States. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard's flagship premium cigarette brand, is the top selling menthol and second largest selling cigarette brand in the U.S. In addition to Newport, the Lorillard product line has four additional cigarette brand families marketed under the Kent, True, Maverick, and Old Gold brand names. These five brands include 43 different product offerings which vary in price, taste, flavor, length and packaging. Lorillard, through its LOEC, Inc. subsidiary, is also the leading electronic cigarette company in the U.S., marketed under the blu ecigs brand. Lorillard maintains its headquarters and manufactures all of its traditional cigarette products in Greensboro, North Carolina.
Certain statements made in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "may," "will be," "will continue," "will likely result" and similar expressions. In addition, any statement that may be provided by management concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible actions by Lorillard, Inc. are also forward-looking statements as defined by the Reform Act.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected. Information describing factors that could cause actual results to differ materially from those in forward-looking statements is available in Lorillard, Inc.'s filings with the Securities and Exchange Commission (the "SEC"), including but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings are available from the SEC over the Internet or in hard copy, and are available on our website at www.lorillard.com. Forward-looking statements speak only as of the time they are made, and we expressly disclaim any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.
SOURCE Lorillard, Inc.