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Imperial Brands, British American Tobacco Sign Deals For New Credit

Published on Mar 31 2020 10:10 AM in A-Brands tagged: Trending Posts / BAT / British American Tobacco / Imperial Brands

Imperial Brands, British American Tobacco Sign Deals For New Credit

Cigarette makers Imperial Brands and British American Tobacco announced deals on Tuesday for new credit while saying they were not seeing any major hit to business from the coronavirus outbreak.

Imperial Brands, the maker of Gauloises Blondes cigarettes, said it secured a new €3.5 billion ($3.85 billion) credit line with an initial three-year term that could be extended bi-annually.

The new loan, which replaced an existing €3 billion facility, was currently undrawn, the Bristol-based company said.

'Increased Stock'

The Kool cigarette maker also said that despite the pandemic hitting economies, trading was in line with expectations so far.

The company said it increased stock in regional distribution centers in hard-hit countries such as Italy, France and Spain and continued to make deliveries to retailers.

British American Tobacco separately said on Tuesday it priced an offering of $2.4 billion notes and intends to use the proceeds for general business purposes, including paying off upcoming maturities.

The tobacco group, whose brands include Lucky Strike and Dunhill cigarettes, earlier in March said it too had not seen any outbreak-related hit on its business and maintained its full-year forecasts.

News by Reuters, edited by Checkout. Click subscribe to sign up for the Checkout print edition.

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