Philip Morris International Files To Tap The Liquidity Well (PM, MO)

Philip Morris International Inc. (NYSE: PM) has just filed a shelf registration that would allow the international tobacco giant to sell debt securities and warrants to purchase debt securities. 

As this will be the first such shelf filing since Altria (NYSE: MO) spun this off, there is no dollar amount tied to it nor are any underwriters assigned.

The company has described this as follows:

• "The debt securities covered by this prospectus will be our direct unsecured obligations. The debt securities will be issued in one or more series under an indenture dated as of April 25, 2008 between us and HSBC Bank USA, National Association, as trustee."

Investors should just treat this as an open shelf registration for the time being, but this is probably no surprise to anyone who has been following the company and that has looked into its long-term and near-term plans.

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Philip Morris shares are trading down by 1.9% today at $50.99 on normal to slightly under normal trading volume.  Yesterday and Wednesday closes at $52.00 appear to be the best closing levels since the spin-off, although other days have seen intraday higher levels than yesterday.

Jon C. Ogg
April 25, 2008