Vector Group Ltd Announces Pricing Of $450 Million Of 7.750% Senior Secured Notes Due 2021

Vector Group Ltd announced that it has priced $450.0 million aggregate principal amount of 7.750% senior secured notes due 2021 (the Notes). The Notes will bear interest at a rate of 7.750% per year, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2013. The Notes will mature on February 15, 2021, unless earlier repurchased or redeemed in accordance with their terms. The Notes will be fully and unconditionally guaranteed by all of the wholly owned domestic subsidiaries of the Company that are engaged in the conduct of the Company`s cigarette business. The guarantees provided by some of the subsidiary guarantors will be secured by first priority or second priority security interests in certain assets of such guarantors. The offering is expected to close on February 12, 2013. The Company intends to use the net cash proceeds from this offering to pay the consideration for a cash tender offer for the Company`s 11% senior secured notes due 2015 (the Existing 11% Notes), the redemption price for any Existing 11% Notes that are not tendered in the cash tender offer, plus accrued and unpaid interest, and any fees and expenses in connection with the cash tender offer and any redemption of the Existing 11% Notes. After such payments, the Company intends to use any remaining net cash proceeds for general corporate purposes.