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Altria Announces Consideration For Debt Tender Offer

Altria Group, Inc. (Altria) (NYSE:MO) today announces the reference yields, total consideration and tender offer consideration for its previously announced cash tender offer for up to $2,100,000,000 aggregate principal amount (the “Tender Cap”) of its senior unsecured notes identified in the table below (the “Notes”). The terms and conditions of the tender offer are described in the Offer to Purchase, dated October 28, 2013, and the related Letter of Transmittal, as amended by Altria’s press release issued earlier today increasing the Tender Cap and Aggregate Maximum Purchase Sublimit.

For Notes validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on November 8, 2013 (the “Early Tender Deadline”) and accepted for purchase, the applicable total consideration per $1,000 principal amount of each series of Notes (for each series, the “Total Consideration”) is the price determined as described in the Offer to Purchase intended to result in a yield to maturity (calculated in accordance with standard market practice) equal to the sum of (i) the yield to maturity for the applicable U.S. Treasury (“UST”) Reference Security specified in the table below, calculated based on the bid-side price of such UST Reference Security as of 11:00 a.m., New York City time, today, November 12, 2013 (being the first business day following the Early Tender Deadline), plus (ii) the applicable Fixed Spread specified in the table below. The Total Consideration includes the Early Tender Payment specified in the table below. Holders tendering their Notes after the Early Tender Deadline and at or prior to 12:00 midnight, New York City time, on Monday, November 25, 2013 (the “Expiration Date”), will be eligible to receive only the applicable Tender Offer Consideration, namely the applicable Total Consideration less the Early Tender Payment specified in the table below.

                                     
     

Aggregate

           

Acceptance

Maximum

 

U.S. Treasury

U.S. Treasury

Fixed

Total

Tender Offer

Title of

CUSIP

Priority

Purchase

Early Tender

Reference

Reference

Spread

Consideration

Consideration

Securities

 

Number

 

Level

 

Sublimit*

 

Payment**

 

Security

 

Yield

 

(bps)

 

***

 

***

9.950%Notes due2038

02209SAE3 $30

2.875% due05/15/2043

3.885%

198

$1,531.85

$1,501.85

1 $1,600,000,000

10.200%Notes due2039

  02209SAH6           $30  

2.875% due05/15/2043

 

3.885%

  198  

$1,566.68

 

$1,536.68

9.700%Notes due2018

02209SAD5 $30

1.375% due09/30/2018

1.403%

95

$1,341.74

$1,311.74

2 Not Applicable

9.250%Notes due2019

  02209SAJ2      

 

  $30  

1.375% due09/30/2018

 

1.403%

  135  

$1,340.19

 

$1,310.19

*Applies to the aggregate principal amount of Notes with Acceptance Priority Level 1.

**Per $1,000 principal amount of Notes validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase.

***Per $1,000 principal amount of Notes accepted for purchase.

 

In addition, holders whose Notes are purchased in the tender offer will be paid accrued and unpaid interest on their purchased Notes from the applicable last interest payment date up to, but not including, the payment date for such purchased Notes. The payment for Notes accepted for purchase is expected to occur on the first business day after the Expiration Date. Assuming that the tender offer expires on November 25, 2013, and the conditions to the tender offer are satisfied or waived, Altria expects the payment for the purchased Notes to be made on November 26, 2013.

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