Previously Announced Capital Markets Activities in Q3 2012
UST LLC repaid $600 million of senior unsecured notes that matured in July 2012. The notes had a coupon of 6.625%.
In August 2012, Altria issued $1.9 billion aggregate principal amount of new senior unsecured 2.85% notes due 2022 and $900 million aggregate principal amount of new senior unsecured 4.25% notes due 2042.
In September 2012, Altria completed a tender offer for $2.0 billion aggregate principal amount of certain of its senior unsecured notes, purchasing $1,151 million aggregate principal amount of its senior unsecured 9.70% notes due 2018 and $849 million aggregate principal amount of its senior unsecured 9.25% notes due 2019. This debt repurchase resulted in a pre-tax charge of $874 million against 2012 third-quarter earnings, reflecting the loss on early extinguishment of debt related to the tender offer.2012 Full-Year Guidance Altria reaffirms its 2012 full-year guidance for reported diluted EPS in a range of $2.03 to $2.07. The forecast reflects estimated total net expenses of $0.16 per share as shown in Table 1, consisting of the loss on early extinguishment of debt related to the tender offer and asset impairment, exit and implementation costs related to the current cost reduction program, partially offset by SABMiller plc (SABMiller) special items, a Philip Morris Capital Corporation (PMCC) leveraged lease benefit and tax items. Altria reaffirms its 2012 full-year guidance for adjusted diluted EPS, which excludes special items shown in Table 1, in a range of $2.19 to $2.23, representing a growth rate of 7% to 9% from an adjusted diluted EPS base of $2.05 per share in 2011. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to this forecast. Reconciliations of full-year adjusted to reported diluted EPS are shown in Table 1.
|Table 1 - Altria's Full-Year Earnings Per Share Guidance Excluding Special Items|
|Reported diluted EPS||$||2.03||to||$||2.07||$||1.64||24%||to||26%|
|Loss on early extinguishment of debt||0.28||—|
|Asset impairment, exit, integration and implementation costs||0.02||0.07|
|SABMiller special items||(0.08||)||0.03|
|PMCC leveraged lease (benefit) charge||(0.03||)||0.30|
|Tobacco and health judgments||—||0.05|
|Adjusted diluted EPS||$||2.19||to||$||2.23||$||2.05||7%||to||9%|
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