Japan Tobacco Inc. said Monday it plans to sell about 150 billion yen of bonds to repay debt for the purchase of Gallaher Group PLC.
Tokyo-based JT hired Daiwa Securities SMBC Co. and Nomura Holdings Inc. to handle the sale, said JT spokeswoman Yukiko Seto.
JT, the world's third-largest traded cigarette maker, is aiming to price the bonds this month, Seto said.
JT completed its purchase of Gallaher, the maker of Benson & Hedges cigarettes in Europe, in April for £7.5 billion ($15 billion) in the biggest international takeover by a Japanese company. JT borrowed 450 billion yen from Mizuho Bank Ltd., part of Mizuho Financial Group Inc., Seto said.
It also borrowed £1.9 billion from a group of banks led by Merrill Lynch & Co. The borrowing was refinanced June 26 using cash and loans from banks including Citigroup Inc.
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