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Lorillard, Inc. (LO)

- NYSE
  • Tue, Jun. 16, 7:06 AM
    | 34 Comments
  • Tue, Jun. 9, 1:02 PM
    • Reynolds American (RAI +1.8%) is offering a seven-part bond deal in order to fund its acquisition of Lorillard (LO +0.5%).
    • The $9B bond sale will be one of the larger corporate offerings seen this year in the U.S.
    • The development in the bond market isn't being ignored by Moody's which downgraded the tobacco company's senior unsecured rating to Baa3 on a Stable outlook.
    • "The downgrade reflects our expectation of much higher leverage as a result of the transaction, as well as execution risk in achieving synergies in a timely fashion," summarizes Moody's.
    | 5 Comments
  • Mon, Jun. 8, 12:59 PM
    • Reynolds American (RAI -1.5%) announces its deal to acquire Lorillard (LO) will close on June 12.
    • The company is able to move forward after a federal judge approved a plan to divest the Maverick, Kool, Salem, and Winston cigarette brands to Imperial Tobacco Group (OTCQX:ITYBY, OTCPK:ITYBF) for $7.1B.
    | 3 Comments
  • Fri, Jun. 5, 8:09 AM
    • Reynolds American (NYSE:RAI) announces it will begin exchanging notes and consent solicitations for senior notes of Lorillard (NYSE:LO) in advance of the merger between the companies.
    • The major impact of the tobacco industry merger is that the new combined entity will stand as the second largest tobacco company behind Altria (NYSE:MO) and strengthen Imperial Tobacco's (OTCQX:ITYBY, OTCPK:ITYBF) position in the U.S. after it picks up some divested brands.
    | 9 Comments
  • Tue, May 26, 6:47 PM
    • Reynolds American’s (NYSE:RAI) $27.4B purchase of Lorillard (NYSE:LO) wins approval from the FTC on the condition that the companies sell four cigarette brands - Winston, Kool, Salem and Maverick - to Imperial Tobacco (OTCQX:ITYBY, OTCPK:ITYBF), as expected.
    • The FTC also says RAI will have to divest to Imperial the LO manufacturing facilities in Greensboro, N.C.
    • The FTC, which spent nearly a year scrutinizing the deal, says it is satisfied the divestitures would restore market competition that would have been lost through the merger, with Imperial “positioned to be a sufficiently robust and aggressive competitor” to a combined RAI-LO and Altria (NYSE:MO).
    • RAI, which owns the Camel and Pall Mall brands, will boost its market share to ~34% by acquiring LO and its Newport brand, the top-selling menthol cigarette; MO, owner of top brand Marlboro, leads the industry with a 47% share.
    | 24 Comments
  • Fri, May 22, 7:11 PM
    • Philip Morris International (NYSE:PM) and British American Tobacco (NYSEMKT:BTI) are suing the British government over new rules starting next May that would require cigarettes to be sold in plain packages.
    • The tobacco industry is alarmed over a growing international move toward laws mandating that colorfully branded cigarette boxes be replaced with drab, uniform packages displaying prominent health warnings.
    • Separately, a U.S. appeals court today issued a split ruling on what kinds of statements tobacco companies must make in product warnings after a judge found them in violation of federal law nearly a decade ago.
    • Defendants included Altria (NYSE:MO), Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO), which have battled with the Justice Department and public health advocates over the exact wording of the warning statements; today's ruling could further delay the date when any such warnings appear in public.
    | 20 Comments
  • Thu, May 21, 4:34 PM
    • Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) are expected to receive antitrust clearance for their planned merger as soon as next week, with few changes in the companies' settlement, WSJ reports.
    • RAI and LO have a financial interest in obtaining antitrust clearance and closing their deal by June 1: If they consummate the merger by then, they can save ~$240M LO would owe its shareholders in dividend payments if it remains a separate company after that date.
    • To address antitrust concerns, the companies already agreed to sell $7.1B in cigarette brands, including Winston, Salem and Kool, along with other assets to U.K.-based Imperial Tobacco.
    | 13 Comments
  • Thu, May 14, 12:39 PM
    • Lorillard (NYSE:LO) declares $0.66/share quarterly dividend, in line with previous.
    • Forward yield 3.68%
    • Payable June 10; for shareholders of record June 1; ex-div May 28.
    | Comment!
  • Fri, Apr. 17, 12:36 PM
    • Lorillard (NYSE:LO): Q1 EPS of $0.82 beats by $0.05.
    • Revenue of $1.67B (+45.2% Y/Y) beats by $490M.
    • Shares +0.17%.
    • Press Release
    | 3 Comments
  • Fri, Apr. 17, 8:27 AM
    • E-cigarettes are catching on with teenagers, according to a new data read.
    • While usage of traditional cigarettes by high school students has declined, e-cigarette demand has increased significantly.
    • 13% of all high school students used e-cigs last year to top the rate they used traditional cigarettes for the first time.
    • The FDA is still working out how it will treat the e-cigarette category.
    • Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTC:AHII, OTCQX:ITYBY.
    | 6 Comments
  • Fri, Apr. 10, 10:22 AM
    • Lorillard (LO +2%) and Reynolds American (RAI +2.4%) break higher on renewed chatter the FTC will decide against a lawsuit to halt the merger between the companies.
    • Earlier today, Reynolds American announced it will host its earnings conference call on April 17 at which time more details on the merger and synergy estimates could be disclosed.
    • Lorilalrd trades at an all-time high, while Reynolds American is only a dollar and change from a 52-week top.
    | 5 Comments
  • Thu, Apr. 2, 5:50 PM
    • The WSJ reports the FTC is "considering possible settlement terms" that would allow Reynolds (NYSE:RAI) to go through with its $25B acquisition of Lorillard (NYSE:LO).
    • Some FTC staffers have reportedly raised objections to a deal, which would combine the country's #2 and #3 cigarette makers (trailing Altria). But "other key figures within the commission believe the better approach would be to approve the merger with a binding legal settlement that includes divestitures."
    • As it is, Reynolds/Lorillard have agreed to sell a slew of assets to Imperial Tobacco for $7.1B. The WSJ states it "isn't clear" if the FTC might want concessions beyond the Imperial deal.
    • Shares of both companies rallied in regular trading ahead of the report, amidst a meeting with the FTC: Reynolds rose 4.4%, and Lorillard rose 2.8%.
    | Comment!
  • Thu, Apr. 2, 1:10 PM
    • Shares of Reynolds American (RAI +3.7%) and Lorillard (LO +3%) trade higher with the company still meeting with the FTC.
    • Analysts now expect the deal to be approved by regulators after some reports earlier this week leaned in the opposite direction.
    | 2 Comments
  • Mon, Mar. 30, 2:31 AM
    • Following months of regulatory examination, Reynolds American (NYSE:RAI) and Lorillard (NYSE:LO) are expected to meet this week with members of the Federal Trade Commission ahead of a final decision by the agency on whether to allow the companies to merge.
    • When the two U.S. cigarette makers announced their $25B deal last July, they sought to address potential regulatory concerns about competition by selling $7.1B in brands and other assets to Imperial Tobacco (OTCQX:ITYBY).
    | 1 Comment
  • Mon, Mar. 23, 11:40 AM
    • Big Tobacco is pushing for tighter regulations on e-cigarettes in a move some say is a clever strategy to keep out smaller players, according to Reuters.
    • The push from established industry players include calls to regulate vape shops.
    • Larger tobacco companies will benefit with their own e-cig brands if independent shops have increased barriers to entry and large retail chains are forced to display the product category behind counters.
    • E-cigarette sales in the U.S. decelerated to 5% growth in Q4.
    • Related stocks: MO, BTI, LO, PM, OTCQB:ECIG, OTCQB:VAPE, OTCPK:HPNN, OTCQB:MCIG, OTCQB:NTRR, OTCPK:VAPR, RAI, OTC:AHII, OTCQX:ITYBY.
    | 15 Comments
  • Mon, Mar. 23, 8:09 AM
    • Cash is still king in the tobacco industry.
    • Despite a wave of worry over global plain-packaging laws on cigarettes, shares of tobacco companies continue to offer solid returns for shareholders due in part to vibrant free cash flow.
    • Pricing has also held up in the sector even with volume in decline.
    • In some regions taxes as a percentage of price has decreased which is a boost to profit margins in the sector.
    • Another factor in the industry is the "massive" barriers erected by regulators that have ended up to act a wide moat for some global companies.
    • Tobacco stocks: LO, PM, MO, VGR, RAI, OTCQX:ITYBY, BTI, OTCPK:BTAFF, OTC:BATMF, OTCPK:JAPAF, OTCPK:JAPAY.
    | 7 Comments
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Company Description
Lorillard Inc is engaged in the manufacture of cigarettes and tobacco in the United States. The Company's principal products are marketed under the brand names of Newport, Kent, True, Maverick and Old Gold with sales in the United States of America.
Industry: Cigarettes
Country: United States