Philip Morris International Closes New USD 2.5 Billion 5-Year Business Transformation-Linked Credit Facility

Regulatory News:

Philip Morris International Inc. (PMI) (NYSE: PM) announces that on September 29, 2021, the company entered into an agreement for its first financing instrument following the issuance of its August 2021 Business Transformation-Linked Financing Framework (Framework). The new revolving credit facility (Facility) provides for borrowings up to an aggregate principal amount of USD 2.5 billion and expires on September 29, 2026, unless extended as per the terms of the credit agreement.

“We are pleased with the broad engagement and support of lenders for our first business transformation-linked financing instrument,” said Emmanuel Babeau, Chief Financial Officer. “This credit facility further reinforces our industry-leading transformation and our commitment to accelerate the end of smoking and to use our strong capabilities to develop products that go beyond nicotine and have a net positive impact on society.”

Consistent with the company’s Framework, the Facility includes business transformation-linked pricing adjustments based on progress on two of PMI’s most ambitious and strategic Business Transformation Metrics: PMI’s smoke-free/total net revenue percentage and the number of markets where PMI’s smoke-free products are available for sale. The adjustments may result in the reduction or increase in both the interest rate and commitment fee under the credit agreement if PMI achieves, or fails to achieve, certain specified targets.

“Investors, lenders and other stakeholders can play an important role in driving change by encouraging and supporting companies that are committed to transform and improve their impact on society,” said Jennifer Motles, Chief Sustainability Officer. “We look forward to continued engagement with our stakeholders in order to further accelerate our smoke-free transformation and set an example for other companies, both inside and outside our industry.”

The Facility replaces PMI’s existing USD 3.5 billion revolving credit facility, which was set to expire on October 1, 2022, and was terminated effective September 29, 2021.

Forward-Looking & Cautionary Statements

This press release contains projections of future results and other forward-looking statements, including statements concerning PMI’s business transformation targets. These forward-looking statements are not a guarantee that PMI’s business transformation targets will be realized. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.