UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 25, 2015
REYNOLDS AMERICAN INC.
(Exact Name of Registrant as Specified in Charter)
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North Carolina |
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1-32258 |
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20-0546644 |
(State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
401 North Main Street
Winston-Salem, North Carolina 27101
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code 336-741-2000
Not Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
On June 25, 2015, Reynolds American Inc. (RAI)
issued a press release announcing the initial results, as of 5:00 p.m., New York City time, on June 24, 2015, of its previously announced offers (the Exchange Offers) to issue its new senior notes (the RAI
Notes) in exchange for any and all (to the extent held by eligible holders) of the $3.5 billion aggregate principal amount of the outstanding senior notes originally issued by Lorillard Tobacco Company, and of its concurrent solicitations
of consents from the eligible holders of the Lorillard Tobacco Company notes to amend the related indenture. RAI also announced the extension of the Consent Payment Deadline (as described in the press release) to 5:00 p.m., New York City time, on
July 10, 2015. The offer of RAI Notes in the Exchange Offers is being made in a private offering exempt from, or not subject to, registration under the Securities Act of 1933, as amended (the Securities Act). In accordance
with Rule 135c under the Securities Act, a copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Neither the press release filed herewith nor this Current Report on Form 8-K is an offer to sell or the solicitation of an offer to buy the
RAI Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. The Exchange Offers have not been and will not be
registered under the Securities Act, or the securities laws of any other jurisdiction.
Item 9.01. |
Financial Statements and Exhibits. |
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Exhibit No. |
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Description |
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99.1 |
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Press Release issued on June 25, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: June 25, 2015
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REYNOLDS AMERICAN INC. |
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By: |
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/s/ McDara P. Folan, III |
Name: |
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McDara P. Folan, III |
Title: |
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Senior Vice President, Deputy General Counsel and Secretary |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press Release issued on June 25, 2015 |
EXHIBIT 99.1
Reynolds American Inc.
P.O. Box 2990
Winston-Salem, NC 27102-2990
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Contact: |
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Investor Relations: |
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Morris Moore (336) 741-3116 |
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Media: |
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David Howard (336) 741-3489 |
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RAI 2015-16 |
Reynolds American Inc. Announces Receipt of Requisite Consents to Amend Lorillard Tobacco Indenture,
Early Results of Private Exchange Offers for Lorillard Tobacco Notes
and Extension of Consent Payment Deadline
WINSTON-SALEM, N.C. June 25, 2015: Reynolds American Inc. (NYSE: RAI) announced today that, in connection with its previously announced
private offers to exchange (the Exchange Offers) any and all (to the extent held by eligible holders) of the $3.5 billion aggregate principal amount of the outstanding senior notes (the Lorillard Tobacco Notes) originally
issued by Lorillard Tobacco Company (Lorillard Tobacco) for newly issued notes of RAI (the RAI Notes), and related solicitation of consents (the Consent Solicitations) to certain amendments to the indenture (the
Indenture Amendments) governing the Lorillard Tobacco Notes (as supplemented, the Lorillard Tobacco Indenture), it has received the requisite number of consents (a majority of the then outstanding principal amount of each
series of Lorillard Tobacco Notes) to adopt the Indenture Amendments with respect to each of the seven outstanding series of Lorillard Tobacco Notes that are subject to the Exchange Offers and Consent Solicitations. RAIs subsidiaries, R.J.
Reynolds Tobacco Company (RJR Tobacco) and R.J. Reynolds Tobacco Holdings, Inc. (RJR), as current obligor and current guarantor, respectively, under the Lorillard Tobacco Notes and Lorillard Tobacco Indenture, expect to
promptly enter into a supplemental indenture containing the Indenture Amendments (the Supplemental Indenture) with the trustee under the Lorillard Tobacco Indenture.
RAI also announced that the previous deadline for eligible holders to tender their Lorillard Tobacco Notes (and thereby give their consents to the Indenture
Amendments) and be eligible to receive the RAI Notes in the same principal amount as the Lorillard Tobacco Notes tendered therefor plus a consent payment of $2.50 per $1,000 principal amount of Lorillard Tobacco Notes tendered (the Consent
Payment) has been extended to 5:00 p.m., New York City time, on Friday, July 10, 2015 (as extended, the Consent Payment Deadline). Currently, this is the same time and date as the Expiration Date (as defined below) for the
Exchange Offers and Consent Solicitations.
Withdrawal rights for the Exchange Offers and Consent Solicitations expired at 5:00 p.m., New York City time,
on June 24, 2015 (the Withdrawal Deadline). Because the Withdrawal Deadline is not being extended, holders may not withdraw Lorillard Tobacco Notes, or revoke consents, previously tendered or tendered after the date of this press
release, except as may be required by law.
As of the Withdrawal Deadline, the following principal amounts of each series of Lorillard Tobacco Notes have
been validly tendered and not validly withdrawn (and consents thereby validly given and not validly revoked):
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CUSIP |
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Total Outstanding Principal Amount |
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Series of Lorillard Tobacco Notes |
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Lorillard Tobacco Notes Tendered By Withdrawal
Deadline |
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Principal Amount |
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Percentage |
544152AD3 |
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$500,000,000 |
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3.500% Senior Notes due 2016 |
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$394,861,000 |
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78.97% |
544152AF8 |
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$500,000,000 |
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2.300% Senior Notes due 2017 |
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$441,380,000 |
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88.28% |
544152AA9 |
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$750,000,000 |
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8.125% Senior Notes due 2019 |
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$654,409,000 |
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87.25% |
544152AB7 |
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$750,000,000 |
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6.875% Senior Notes due 2020 |
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$630,914,000 |
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84.12% |
544152AG6 |
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$500,000,000 |
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3.750% Senior Notes due 2023 |
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$465,816,000 |
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93.16% |
544152AC5 |
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$250,000,000 |
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8.125% Senior Notes due 2040 |
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$235,641,000 |
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94.26% |
544152AE1 |
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$250,000,000 |
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7.000% Senior Notes due 2041 |
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$238,302,000 |
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95.32% |
As previously reported, on June 12, 2015, Lorillard, Inc. (Lorillard) merged with a wholly owned
subsidiary of RAI, with Lorillard surviving as a wholly owned subsidiary of RAI (the Merger). Lorillard was the guarantor of the Lorillard Tobacco Notes. Shortly thereafter, Lorillards subsidiary, Lorillard Tobacco, merged with and
into RJR Tobacco (the Lorillard Tobacco Merger), with RJR Tobacco surviving. In connection with the Lorillard Tobacco Merger, RJR Tobacco assumed Lorillard Tobaccos obligations under the Lorillard Tobacco Notes and Lorillard
Tobacco Indenture and is now the principal obligor on the Lorillard Tobacco Notes, and RJR Tobaccos direct parent, RJR, assumed Lorillards obligations as guarantor under the Lorillard Tobacco Notes and Lorillard Tobacco Indenture.
The Indenture Amendments will: (1) eliminate substantially all of the restrictive covenants and a bankruptcy event of default for the issuer and the
guarantor of Lorillard Tobacco Notes under the Lorillard Tobacco Indenture; (2) eliminate the requirement under the Lorillard Tobacco Indenture that the guarantor of the Lorillard Tobacco Notes continue to provide Lorillard Tobacco noteholders
with financial statements and other financial information similar to that provided in periodic reports under the Securities Exchange Act of 1934 when it is not subject to such reporting requirements; and (3) relieve the issuer of the Lorillard
Tobacco Notes of the requirement (if any) under the Lorillard Tobacco Indenture that the issuer offer to repurchase the Lorillard Tobacco Notes upon certain change of control events combined with certain credit ratings events to the extent such
change of control events relate to, arise out of or are undertaken in connection with the Merger or the Lorillard Tobacco Merger. The Supplemental Indenture will become effective upon execution and delivery by the parties thereto, but the Indenture
Amendments will not become operative until RAI has accepted and exchanged and/or paid for the Lorillard Tobacco Notes validly tendered and not validly withdrawn in the Exchange Offers.
The Exchange Offers and Consent Solicitations are being made upon the terms and conditions set forth in an Offer to Exchange and Consent Solicitation
Statement, dated June 11, 2015 (the Offer to Exchange), and a related consent and letter of transmittal (the Letter of Transmittal and, together with the Offer to Exchange, the Exchange Offer Documents).
Except as described in this press release with respect to the extension of the Consent Payment Deadline, the terms of the Exchange Offers and Consent Solicitations remain as set forth in the Exchange Offer Documents. The Exchange Offers and Consent
Solicitations will expire at 5:00 p.m., New York City time, on July 10, 2015, unless such date is extended (the Expiration Date). RAI currently expects settlement of the Exchange Offers to occur on July 15, 2015, unless the
Expiration Date is extended. RAI reserves the right to terminate, withdraw, amend or extend the Exchange Offers and Consent Solicitations in its discretion, subject to the terms and conditions set forth in the Exchange Offer Documents. RAIs
obligation to accept and exchange Lorillard Tobacco Notes validly tendered pursuant to the Exchange Offers is subject to the conditions set forth in the Exchange Offer Documents, including completion of the Merger, which has been satisfied as
described above.
Each eligible holder exchanging Lorillard Tobacco Notes in the Exchange Offers will be eligible to receive, in exchange for the
Lorillard Tobacco Notes validly tendered and not validly withdrawn, RAI Notes having interest provisions, maturity dates and interest payment dates identical to the Lorillard Tobacco Notes exchanged, subject to the terms and conditions set forth in
the Exchange Offer Documents. The RAI Notes will be guaranteed by additional guarantors (expected to be the same guarantors that guarantee RAIs existing senior notes and credit facility) as compared with the Lorillard Tobacco Notes, which are
currently guaranteed only by RJR.
Eligible holders who validly tender their Lorillard Tobacco Notes by the Consent Payment Deadline (and who did not
validly withdraw them prior to the Withdrawal Deadline) are eligible to receive, subject to the terms and conditions set forth in the Exchange Offer Documents, RAI Notes in the same principal amount as the Lorillard Tobacco Notes tendered therefor
plus the Consent Payment.
If the Expiration Date is extended and the Consent Payment Deadline is not further extended, eligible holders who validly
tender their Lorillard Tobacco Notes after the Consent Payment Deadline but by the Expiration Date will be eligible to receive, subject to the terms and conditions set forth in the Exchange Offer Documents, RAI Notes in a principal amount equal to
$970 per $1,000 principal amount of Lorillard Tobacco Notes tendered therefor, and will not be entitled to the Consent Payment.
Lorillard Tobacco
noteholders validly tendering their Lorillard Tobacco Notes will be deemed to have delivered consents to all of the Indenture Amendments. Lorillard Tobacco noteholders will not be permitted to tender their Lorillard Tobacco Notes without delivering
consents or deliver consents without tendering their Lorillard Tobacco Notes.
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This press release is issued pursuant to Rule 135c under the Securities Act of 1933, as amended (the
Securities Act). This press release is neither an offer to sell nor the solicitation of an offer to buy the RAI Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any
person to whom, such an offer, solicitation or sale is unlawful. The Exchange Offers have not been and will not be registered under the Securities Act, or the securities laws of any other jurisdiction. The RAI Notes will be issued in reliance upon
exemptions from, or in transactions not subject to, registration under the Securities Act. The RAI Notes and the related guarantees will be offered for exchange only (1) to qualified institutional buyers as defined in Rule 144A under the
Securities Act in reliance on the exemption provided by Section 4(a)(2) of the Securities Act and (2) outside the United States to persons other than U.S. persons (as defined in Rule 902 under the Securities Act) in reliance upon
Regulation S under the Securities Act. The RAI Notes may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and
applicable state laws.
The Exchange Offers and Consent Solicitations are being made only pursuant to the Exchange Offer Documents. The Exchange Offer
Documents and other documents relating to the Exchange Offers and Consent Solicitations will only be distributed to Lorillard Tobacco noteholders who complete and return a letter of eligibility confirming that they are within the categories of
eligible participants in the Exchange Offers. None of RAI, its subsidiaries or affiliates or, to RAIs knowledge, any other person or entity, is making any recommendation as to whether holders should tender their Lorillard Tobacco Notes in the
Exchange Offers.
Noteholders who desire a copy of the eligibility letter should contact Global Bondholder Services Corporation, the information agent for
the Exchange Offers and Consent Solicitations, at (866) 470-3800 (U.S. Toll-free). Banks and brokers should call (212) 430-3774. Global Bondholder Services Corporation will also provide copies of the Exchange Offer Documents to eligible
noteholders.
This press release, the Exchange Offer Documents and any other documents or materials relating to the Exchange Offers and Consent
Solicitations may only be communicated to persons in the United Kingdom in circumstances where section 21(1) of the Financial Services and Markets Act 2000 does not apply. Accordingly, this press release and the Exchange Offer Documents are only for
circulation to persons inside the United Kingdom who fall within one of the following categories: (1) any person who is a holder of any of the Lorillard Tobacco Notes; or (2) any other person also falling within Article 43(2) or within
Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Financial Promotion Order) or falling within the definition of investment professionals (as defined in Article 19(5)) of
the Financial Promotion Order; or (3) any person to whom the communication may otherwise lawfully be made. This press release, the Exchange Offer Documents and any other documents or materials relating to the Exchange Offers and Consent
Solicitations are only available in the United Kingdom to such persons and the transactions contemplated in the Exchange Offer Documents will be available only to, and may be engaged in only with, such persons, and such financial promotion must not
be relied or acted upon by persons in the United Kingdom unless they fall under the above categories.
Forward-Looking Statements
Statements included in this press release that are not historical in nature are forward-looking statements. When used in this press release,
forward-looking statements include, without limitation, statements regarding the completion, settlement and other timing aspects of the Exchange Offers and Consent Solicitations, and RAIs expectations, beliefs or intentions that are signified
by the words anticipate, believe, estimate, expect, intend, may, objective, outlook, plan, project, possible,
potential, should and similar expressions. These statements regarding future events inherently are subject to a variety of risks, contingencies and other uncertainties that could cause actual results to differ materially from
those described in or implied by the forward-looking statements. Some of these risks, contingencies and other uncertainties are set forth in RAIs Annual Report on Form 10-K for the year ended December 31, 2014 under the heading Risk
Factors and in RAIs Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 under the heading Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Financial
ConditionCautionary Information Regarding Forward-Looking Statements, as the same may be updated in subsequent RAI reports. These risks and uncertainties include those associated with eligible holders participating, or declining to
participate, in the Exchange Offers and Consent Solicitations, including:
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the possible negative effects of the Indenture Amendments on unexchanged Lorillard Tobacco Notes; |
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differences between the RAI indenture and the Lorillard Tobacco Indenture; |
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the unexchanged Lorillard Tobacco Notes not having the benefit of the additional guarantees of the RAI Notes; |
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the limited trading market for the unexchanged Lorillard Tobacco Notes, and any exacerbating effect of the Exchange Offers on such market; |
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the possibility that rating agencies will lower their rating on unexchanged Lorillard Tobacco Notes, or cease rating them; |
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the lack of any valuation or fairness opinion with respect to the consideration offered in the Exchange Offers; |
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the absence of recommendations on whether Lorillard Tobacco noteholders should participate in the Exchange Offers; |
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the possibility of future repurchases, exchanges, tenders or similar transactions with respect to the unexchanged Lorillard Tobacco Notes, which may be for different or more consideration than offered in the Exchange
Offers; |
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the possibility of termination, delay or amendment of the Exchange Offers and Consent Solicitations; and |
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the possibility that Lorillard Tobacco noteholders who participate in the Exchange Offers may recognize substantial gain for U.S. federal income tax purposes. |
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