Philip Morris International Closes New USD 2.5 Billion 5-Year Business Transformation-Linked Credit Facility
September 30 2021 - 6:00AM
Business Wire
Regulatory News:
Philip Morris International Inc. (PMI) (NYSE: PM) announces that
on September 29, 2021, the company entered into an agreement for
its first financing instrument following the issuance of its August
2021 Business Transformation-Linked Financing Framework
(Framework). The new revolving credit facility (Facility) provides
for borrowings up to an aggregate principal amount of USD 2.5
billion and expires on September 29, 2026, unless extended as per
the terms of the credit agreement.
“We are pleased with the broad engagement and support of lenders
for our first business transformation-linked financing instrument,”
said Emmanuel Babeau, Chief Financial Officer. “This credit
facility further reinforces our industry-leading transformation and
our commitment to accelerate the end of smoking and to use our
strong capabilities to develop products that go beyond nicotine and
have a net positive impact on society.”
Consistent with the company’s Framework, the Facility includes
business transformation-linked pricing adjustments based on
progress on two of PMI’s most ambitious and strategic Business
Transformation Metrics: PMI’s smoke-free/total net revenue
percentage and the number of markets where PMI’s smoke-free
products are available for sale. The adjustments may result in the
reduction or increase in both the interest rate and commitment fee
under the credit agreement if PMI achieves, or fails to achieve,
certain specified targets.
“Investors, lenders and other stakeholders can play an important
role in driving change by encouraging and supporting companies that
are committed to transform and improve their impact on society,”
said Jennifer Motles, Chief Sustainability Officer. “We look
forward to continued engagement with our stakeholders in order to
further accelerate our smoke-free transformation and set an example
for other companies, both inside and outside our industry.”
The Facility replaces PMI’s existing USD 3.5 billion revolving
credit facility, which was set to expire on October 1, 2022, and
was terminated effective September 29, 2021.
Forward-Looking & Cautionary Statements
This press release contains projections of future results and
other forward-looking statements, including statements concerning
PMI’s business transformation targets. These forward-looking
statements are not a guarantee that PMI’s business transformation
targets will be realized. Achievement of future results is subject
to risks, uncertainties and inaccurate assumptions. In the event
that risks or uncertainties materialize, or underlying assumptions
prove inaccurate, actual results could vary materially from those
contained in such forward-looking statements. Pursuant to the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995, PMI is identifying important factors that, individually or
in the aggregate, could cause actual results and outcomes to differ
materially from those contained in any forward-looking statements
made by PMI.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce its competitiveness, eliminate its
ability to communicate with adult consumers, or ban certain of its
products in certain markets or countries; health concerns relating
to the use of tobacco and other nicotine-containing products and
exposure to environmental tobacco smoke; litigation related to
tobacco use and intellectual property; intense competition; the
effects of global and individual country economic, regulatory and
political developments, natural disasters and conflicts; changes in
adult smoker behavior; lost revenues as a result of counterfeiting,
contraband and cross-border purchases; governmental investigations;
unfavorable currency exchange rates and currency devaluations, and
limitations on the ability to repatriate funds; adverse changes in
applicable corporate tax laws; adverse changes in the cost,
availability, and quality of tobacco and other agricultural
products and raw materials, as well as components and materials for
our electronic devices; and the integrity of its information
systems and effectiveness of its data privacy policies. PMI's
future profitability may also be adversely affected should it be
unsuccessful in its attempts to produce and commercialize
reduced-risk products or if regulation or taxation do not
differentiate between such products and cigarettes; if it is unable
to successfully introduce new products, promote brand equity, enter
new markets or improve its margins through increased prices and
productivity gains; if it is unable to expand its brand portfolio
internally or through acquisitions and the development of strategic
business relationships; or if it is unable to attract and retain
the best global talent. Future results are also subject to the
lower predictability of our reduced-risk product category's
performance. PMI is further subject to other risks detailed from
time to time in its publicly filed documents. PMI cautions that the
foregoing list of important factors is not a complete discussion of
all potential risks and uncertainties. PMI does not undertake to
update any forward-looking statement that it may make from time to
time, except in the normal course of its public disclosure
obligation.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is leading a transformation in
the tobacco industry to create a smoke-free future and ultimately
replace cigarettes with smoke-free products to the benefit of
adults who would otherwise continue to smoke, society, the company,
its shareholders and its other stakeholders. PMI is a leading
international tobacco company engaged in the manufacture and sale
of cigarettes, as well as smoke-free products, associated
electronic devices and accessories, and other nicotine-containing
products in markets outside the U.S. In addition, PMI ships
versions of its IQOS Platform 1 device and consumables to Altria
Group, Inc. for sale under license in the U.S., where these
products have received marketing authorizations from the U.S. Food
and Drug Administration (FDA) under the premarket tobacco product
application (PMTA) pathway; the FDA has also authorized the
marketing of a version of IQOS and its consumables as a Modified
Risk Tobacco Product (MRTP), finding that an exposure modification
order for these products is appropriate to promote the public
health. PMI is building a future on a new category of smoke-free
products that, while not risk-free, are a much better choice than
continuing to smoke. Through multidisciplinary capabilities in
product development, state-of-the-art facilities and scientific
substantiation, PMI aims to ensure that its smoke-free products
meet adult consumer preferences and rigorous regulatory
requirements. PMI's smoke-free product portfolio includes
heat-not-burn and nicotine-containing vapor products. As of June
30, 2021, PMI's smoke-free products are available for sale in 67
markets in key cities or nationwide, and PMI estimates that
approximately 14.7 million adults around the world have already
switched to IQOS and stopped smoking. For more information, please
visit www.pmi.com and www.pmiscience.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210930005403/en/
Philip Morris International Investor Relations: New York:
+1 (917) 663 2233 Lausanne: +41 (0)58 242 4666
InvestorRelations@pmi.com
Media: Lausanne: +41 (0)58 242 4500 Iro.Antoniadou@pmi.com
Philip Morris (NYSE:PM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Philip Morris (NYSE:PM)
Historical Stock Chart
From Sep 2023 to Sep 2024