Aug. 1 (Bloomberg) -- Lorillard Inc., the maker of Newport menthol cigarettes, sold $750 million of debt as it taps the corporate bond market for the first time in more than a year.
Lorillard priced $500 million of five-year notes that yield 225 basis points, or 2.25 percentage points, more than similar- maturity Treasuries, according to a person familiar with the offering. A $250 million portion of 30-year bonds pay a spread of 300 basis points, said the person, who declined to be identified because the marketing was private.
Proceeds will be used for general corporate purposes, including buying back stock, making acquisitions or capital expenditures or adding to working capital, the Greensboro, North Carolina-based company said in a filing with the Securities and Exchange Commission.
Barclays Plc, Goldman Sachs Group Inc., Wells Fargo & Co., JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc managed the sale, according to the regulatory filing.
Lorillard last sold bonds in April 2010, issuing $750 million of 6.875 percent notes due May 2020 at a spread of 300 basis points and $250 million of 8.125 percent bonds maturing in May 2040 at a yield of 340 basis points more than Treasuries, according to data compiled by Bloomberg.
--With assistance from Molly Seltzer in New York. Editors: John Parry, Pierre Paulden
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