Vector Group Ltd. Announces Commencement of Notes Offering of $850 Million of Senior Secured Notes Due 2025
January 19, 2017 at 03:44 am EST
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Vector Group Ltd. announced that it has commenced an offer to issue and sell $850 million aggregate principal amount of senior secured notes due 2025 (Notes). The offering is expected to price on January 19, 2017, subject to the satisfaction of customary closing conditions. The company intends to use the net cash proceeds from the offering of the Notes and, to the extent completed concurrently with the offering of the Notes, the Equity Sale or cash on hand to redeem all of the company's outstanding 7.750% Senior Secured Notes due 2021 (Existing Notes) and for general corporate purposes. 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.
Vector Group Ltd. is a holding company for Liggett Group LLC, Vector Tobacco LLC, and New Valley LLC. The Company operates through two segments: Tobacco and Real Estate. Tobacco segment is engaged in the manufacture and sale of discount cigarettes in the United States through its Liggett Group LLC and Vector Tobacco LLC subsidiaries. Liggett Group LLC manufactures and markets approximately 100 different cigarette brand styles. Liggetts Group LLCâs brand portfolio includes Montego, Eagle 20âs, Pyramid and Grand Prix, Liggett Select, Eve, USA and various partner brands and private label brands. Real Estate segment is engaged in the real estate investment business through its subsidiary, New Valley LLC, which acquires and invests in real estate properties or projects. It invests in numerous real estate projects in different asset classes, including planned communities, condominium and mixed-use developments, apartment buildings, hotels and commercial properties.