Vector Announces Commencement of Notes Offering of an Additional $200 Million of 7.750% Senior Secured Notes Due 2021
May 02 2016 - 7:04AM
Business Wire
Vector Group Ltd. (NYSE:VGR) (“Vector” or the “Company”)
announced today that it has commenced an offer to issue and sell an
additional $200 million aggregate principal amount of 7.750% senior
secured notes due 2021 (the “Notes”). The offering is expected to
price on May 3, 2016 and close on May 9, 2016, subject to the
satisfaction of customary closing conditions. There can be no
assurance that the offering will be priced or completed.
The Notes will have the same terms except issue date and
purchase price and will be treated as the same series as the $450
million aggregate principal amount of 7.750% senior secured notes
due 2021 issued by the Company on February 12, 2013 and the
additional $150 million aggregate principal amount of 7.750% senior
secured notes due 2021 issued by the Company on April 15, 2014
(together, the “Existing 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,
2016. 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 businesses. 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 Company intends to use the net cash proceeds from this
offering for general corporate purposes, including, but not limited
to, additional investments in real estate through the company’s
wholly owned subsidiary, New Valley LLC, and in its existing
tobacco business.
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 purchase the Notes or any other
security, and there will not 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”, “could” 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 May 2,
2016. 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.
Vector Group is a holding company that indirectly owns Liggett
Group LLC, Vector Tobacco Inc. and Zoom E-Cigs LLC and directly
owns New Valley LLC, which owns a controlling interest in Douglas
Elliman Realty, LLC.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160502005583/en/
Emily Deissler/Benjamin Spicehandler212-687-8080orVector Group
Ltd.J. Bryant Kirkland III, 305-579-8000
Vector (NYSE:VGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Vector (NYSE:VGR)
Historical Stock Chart
From Apr 2023 to Apr 2024