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Exhibit 4.2
REGISTERED
No.
ALTRIA GROUP, INC.
7.125 % NOTES DUE 2010
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PRINCIPAL AMOUNT
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$
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CUSIP NO. 02209S AF0
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ISIN NO. US02209SAF02
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THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY
TRUST COMPANY (THE "DEPOSITARY") TO A NOMINEE OF THE DEPOSITARY OR
BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.
ALTRIA GROUP, INC., a Virginia corporation (hereinafter called
the "Company", which term includes any successor corporation under
the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co. or registered assigns, the
principal sum of $
on June 22, 2010, and to pay interest thereon from
December 22, 2008 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for,
semi-annually in arrears on June 22 and December 22 in
each year, commencing June 22, 2009 at the rate of
7.125% per annum until the principal hereof is paid or made
available for payment.
The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be
June 7 or December 7 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any
such interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record
Date and may be paid to the Person in whose name this Note (or one
or more
Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee for the Notes, notice
whereof shall be given to Holders of Notes not less than 10 days
prior to such Special Record Date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes may be listed, and upon
such notice as may be required by such exchange, all as more fully
provided in said Indenture.
Payment of the principal of (and premium, if any) and interest
on this Note will be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, The City
of New York, in such coin or currency of the United States of
America, as at the time of payment is legal tender for payment of
public and private debts; provided , however , that
at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such
address shall appear on the Securities Register or by wire transfer
at such place and to such account at a banking institution in the
United States as may be designated in writing to the Trustee at
least 15 days prior to the date for payment by the person entitled
thereto. All payments of principal, premium, if any, and interest
in respect of this Note will be made by the Company in immediately
available funds.
Additional provisions of this Note are contained on the reverse
hereof, and such provisions shall have the same effect as though
fully set forth in this place.
Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee for the Notes by manual
signature, this Note shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, ALTRIA GROUP, INC. has caused
this instrument to be duly executed.
Dated:
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ALTRIA GROUP, INC.
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By:
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Name: William F. Gifford, Jr.
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Title: Vice President and
Treasurer
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CERTIFICATE OF
AUTHENTICATION
This is one of the Securities of the series designated therein
described in the within-mentioned Indenture.
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DEUTSCHE BANK TRUST COMPANY AMERICAS,
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as Trustee
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By:
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DEUTSCHE BANK NATIONAL TRUST COMPANY
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By:
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Authorized Signatory
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(Reverse of Note)
ALTRIA GROUP, INC.
This Note is one of a duly authorized issue of debentures, notes
or other evidences of indebtedness (hereinafter called the
"Securities") of the Company of the series hereinafter specified,
which series is limited in aggregate principal amount to
$775,000,000 (except as provided in the Indenture hereinafter
mentioned), all such Securities issued and to be issued under an
Indenture, dated as of November 4, 2008, among the Company,
Philip Morris USA Inc., as Guarantor, and Deutsche Bank Trust
Company Americas, as Trustee (herein called the "Indenture"), to
which Indenture and all other indentures supplemental thereto
reference is hereby made for a statement of the rights and
limitations of rights thereunder of the Holders of the Securities
and of the rights, obligations, duties and immunities of the
Trustee for each series of Securities and of the Company, and the
terms upon which the Securities are and are to be authenticated and
delivered. As provided in the Indenture, the Securities may be
issued in one or more series, which different series may be issued
in various aggregate principal amounts, may mature at different
times, may bear interest, if any, at different rates, may be
subject to different redemption provisions, if any, may be subject
to different sinking, purchase or analogous funds, if any, may be
subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided or permitted. This Note
is one of a series of the Securities designated therein as
7.125 % Notes due 2010 (the "Notes").
Guarantee
The Notes have the benefit of the unconditional guarantee by the
Guarantor to pay the principal of, and premium, if any, and
interest, if any, on the Notes, according to the terms of and as
more fully described in the Indenture and the related Guarantee
Agreement executed by the Guarantor on the date hereof.
Interest Rate Adjustment
The interest rate payable on the Notes will be subject to
adjustments from time to time if either Moody’s Investors
Service, Inc., a subsidiary of Moody’s Corporation, and its
successors ("Moody’s"), or Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and its successors ("S&P"), or, in either case, any Substitute
Rating Agency (as defined below) thereof downgrades (or
subsequently upgrades) the debt rating assigned to the Notes, in
the manner described below.
If the rating from Moody’s (or any Substitute Rating
Agency thereof) of the Notes is decreased to a rating set forth in
the immediately following table, the interest rate on the Notes
will increase such that it will equal the interest rate payable on
the Notes on their Issue Date plus the percentage set forth
opposite the ratings from the table below:
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Moody’s Rating*
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Percentage
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Ba1
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0.25
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%
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Ba2
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0.50
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%
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Ba3
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0.75
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%
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B1 or below
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1.00
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%
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*
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Including the equivalent ratings of
any Substitute Rating Agency.
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If the rating from S&P (or any Substitute
Rating Agency thereof) of the Notes is decreased to a rating set
forth in the immediately following table, the interest rate on the
Notes will increase such that it will equal the interest rate
payable on the Notes on their Issue Date plus the percentage set
forth opposite the ratings from the table below:
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S&P Rating*
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Percentage
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BB+
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0.25
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%
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BB
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0.50
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%
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BB-
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0.75
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%
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B+ or below
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1.00
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%
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*
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Including the equivalent ratings of
any Substitute Rating Agency.
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If at any time the interest rate on the Notes has
been adjusted upward and either Moody’s or S&P (or, in
either case, a Substitute Rating Agency thereof), as the case may
be, subsequently increases its rating of the Notes to any of the
threshold ratings set forth above, the interest rate on the Notes
will be decreased such that the interest rate for the Notes equals
the interest rate payable on the Notes on their Issue Date plus the
percentages set forth opposite the ratings from the tables above in
effect immediately following the increase. If Moody’s (or any
Substitute Rating Agency thereof) subsequently increases its rating
of the Notes to Baa3 (or its equivalent, in the case of a
Substitute Rating Agency) or higher, and S&P (or any Substitute
Rating Agency thereof) increases its rating to BBB- (or its
equivalent, in the case of a Substitute Rating Agency) or higher
the interest rate on the Notes will be decreased to the interest
rate payable on the Notes on their Issue Date. In addition, the
interest rates on the Notes will permanently cease to be subject to
any adjustment described above (notwithstanding any subsequent
decrease in the ratings by either or both of Moody’s and
S&P) if the Notes become rated A3 and A- (or the equivalent of
either such rating, in the case of a Substitute Rating Agency) or
higher by Moody’s and S&P (or, in either case, a
Substitute Rating Agency thereof), respectively (or one of these
ratings if the Notes are only rated by one rating
agency).
Each adjustment required by any decrease or increase in a rating
set forth above, whether occasioned by the action of Moody’s
or S&P (or, in either case, a Substitute Rating Agency
thereof), shall be made independent of any and all other
adjustments. In no event shall (1) the interest rate for the
Notes of a series be reduced to below the interest rate payable on
their Issue Date or (2) the total increase in the interest
rate on the Notes exceed 2.00% above the interest rate payable on
the Notes on their Issue Date.
No adjustments in the interest rate of the Notes
shall be made solely as a result of a rating agency ceasing to
provide a rating of the Notes. If at any time fewer than two rating
agencies provide a rating of the Notes for a reason beyond the
Company’s control, the Company will use its commercially
reasonable efforts to obtain a rating of the Notes from a
Substitute Rating Agency, to the extent one exists, and if a
Substitute Rating Agency exists, for purposes of determining any
increase or decrease in the interest rate on the Notes pursuant to
the tables above (a) such Substitute Rating Agency will be
substituted for the last rating agency to provide a rating of the
Notes but which has since ceased to provide such rating,
(b) the relative rating scale used by such Substitute Rating
Agency to assign ratings to senior unsecured debt will be
determined in good faith by an independent investment banking
institution of national standing appointed by the Company and, for
purposes of determining the applicable ratings included in the
applicable table above with respect to such Substitute Rating
Agency, such ratings will be deemed to be the equivalent ratings
used by Moody’s or S&P, as applicable, in such table and
(c) the interest rate on the Notes will increase or decrease,
as the case may be, such that the interest rate equals the interest
rate payable on the notes of such series on their Issue Date plus
the appropriate percentage, if any, set forth opposite the rating
from such Substitute Rating Agency in the applicable table above
(taking into account the provisions of clause (b) above) (plus
any applicable percentage resulting from a decreased rating by the
other rating agency). For so long as only one rating agency
provides a rating of the Notes, any subsequent increase or decrease
in the interest rate of the Notes necessitated by a reduction or
increase in the rating by the agency providing the rating shall be
twice the percentage set forth in the applicable table above. For
so long as none of Moody’s, S&P or a Substitute Rating
Agency provides a rating of the Notes, the interest rate on the
Notes will increase to, or remain at, as the case may be, 2.00%
above the interest rate payable on the notes of such series on
their Issue Date.
Any interest rate increase or decrease described above will take
effect from the first day of the interest period during which a
rating change requires an adjustment in the interest rate. If
Moody’s or S&P (or, in either case, a Substitute Rating
Agency thereof) changes its rating of the Notes more than once
during any particular interest period, the last change by such
agency will control for purposes of any interest rate increase or
decrease with respect to the Notes described above relating to such
rating agency’s action.
Promptly after any change in the interest rate payable on the
Notes as provided above, the Company shall provide the Trustee an
Officers’ Certificate to the effect that the interest rate
payable on the Notes has changed in accordance with this provision
and setting forth the amount of the related increase or decrease
and the new interest rate payable
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