Philip Morris International (NYSE:PM) Signs Credit Agreement for $1.6 Billion Revolving Credit Facility

Philip Morris International Inc. (PMI) announced on December 17, 2024, that it has entered into a credit agreement for a senior unsecured revolving credit facility. The credit agreement, effective as of January 29, 2025, allows for borrowings up to €1.5 billion (approximately $1.6 billion) and is set to expire on January 29, 2028, unless extended as per the agreement terms.

The Facility’s interest rates will be determined based on prevailing interest rates, as outlined in the Credit Agreement. The borrowed funds from this Facility are slated for general corporate purposes, including fulfilling working capital requirements.

In case of default, the Credit Agreement specifies events such as nonpayment of principal or interest, inaccurate representations and warranties, covenant breaches, bankruptcy, insolvency, and failure to meet ERISA obligations. Should any defaults occur and remain uncured within specified grace periods, the outstanding loans could be accelerated, and commitments from lenders terminated.

It’s important to note that certain lenders and their affiliates have, and may continue to provide, financial advisory services, investment banking services, and other services to PMI in exchange for customary fees. Additionally, PMI and its subsidiaries may engage in foreign exchange and derivative transactions with these lenders and their affiliates.

A more comprehensive review of the terms and conditions of this credit agreement can be found in Exhibit 10.1 of PMI’s latest SEC filing.

Prominent among the details of the agreement is the provision for borrowings up to €1.5 billion. The Credit Agreement runs through 2028, offering ample time and flexibility for Philip Morris International’s financial operations.

This new agreement signals strategic financial planning on the part of PMI and is expected to bolster the company’s position in the market moving forward.

This report is submitted in accordance with the Securities Exchange Act of 1934, with the undersigned duly authorized by Philip Morris International Inc.

Please note that this summary is subject to the complete terms and conditions outlined in the Credit Agreement available in Exhibit 10.1 of the SEC filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Philip Morris International’s 8K filing here.

About Philip Morris International

Philip Morris International Inc operates as a tobacco company working to delivers a smoke-free future and evolving portfolio for the long-term to include products outside of the tobacco and nicotine sector. The company's product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products primarily under the IQOS and ZYN brands; and consumer accessories, such as lighters and matches.