DLA Piper advises Philip Morris International Inc. on its Consent Solicitation of certain outstanding notes
DLA Piper advised Philip Morris Holland Holdings B.V., an affiliate of Philip Morris International Inc. (PMI), on the successful consent solicitation of the holders of eight series of English law governed Notes issued by Swedish Match AB denominated in Euro, US dollars and Swedish Krona with a total outstanding value of approximately €1.18 billion. The Notes are set to mature on dates from October 2023 to April 2029.
In return for PMI providing a guarantee of Swedish Match’s payment obligations under the Notes, the Notes were amended to reduce the Swedish Match’s ongoing reporting requirements by removing the obligation to prepare audited consolidated financial accounts and to provide Swedish Match with additional flexibility for potential reorganization of its group and its subsidiaries, if required.
The recent transaction builds on DLA Piper’s representation of PMI on the US$16 billion acquisition of Swedish Match in 2022, in addition to advising PMI on three debt financings totaling over US$13 billion in the past 12 months.
PMI is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include reduced-risk products including heat-not-burn, vapor and oral nicotine products, in markets outside of the United States of America.
Swedish Match is a leading developer, manufacturer and distributor of global brands in the smoke-free product segment. PMI and Swedish Match share a vision of a world without cigarettes and a commitment to developing and commercializing smoke-free products that are less harmful than cigarettes.
“We are very proud of our ability to collaborate as a global team on this important deal for our client. We hope to continue to support PMI on its trajectory toward a smoke-free future,” said Sanjay Shirodkar, the DLA Piper partner who led the US team.
The DLA Piper US team was led by Sanjay Shirodkar (Washington, DC) and included Brian Wohlberg (Chicago), and of counsel Jay Finkelstein (Reston).
The DLA Piper UK team was led by Mark Dwyer and Steven Krivinskas (both in London) and included senior associate Emma Charnock and associate Swati Lal (both in in London).
The DLA Piper Swedish team was led by Carl Schweiler (Stockholm) and included associate Hugo Ahlner (Stockholm).