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British American Tobacco Sells Second-Biggest Bond Deal of Year

The $17.25B of debt will finance BAT's purchase of Reynolds American.

British American Tobacco Plc sold the second-largest bond deal of the year to finance its purchase of the portion of Reynolds American Inc. that it didn’t already own.

BAT sold $17.25 billion of dollar-denominated debt in eight parts, the longest of which is a 4.54% 30-year security that yields 1.7 percentage points more than Treasuries. That’s down from initial talk between 1.8 percentage points to 1.85 percentage points, according to a person with knowledge of the matter, who asked not to be named because the deal is private.

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