Deutsche Bank and Lehman Brothers will be hosting a bank meeting Thursday in New York for Commonwealth Brands to refinance all existing debt. The company anticipates the refinancing should be completed before the end of the year. John Poling, president and ceo of the fourth largest U.S. cigarette manufacturer, said current market conditions influenced the decision to refinance now. He would not comment on the amount of the deal.
The company took out a $600 million term loan "B" in 2002, which was priced up from LIBOR plus 3 1/2% to LIBOR plus 4% (LMW, 8/18/02). It also includes a $17 million revolver. In 2004 the company refinanced the "B" loan.