Long-Term Debt

12 Months Ended

Dec. 31, 2020

At December 31, 2020 and 2019, Altria’s long-term debt consisted of the following:


(in millions)	2020		2019
USD notes, 2.350% to 10.20%, interest payable semi-annually, due through 2059 (1)	$	24,258	$	23,259
USD Debenture, 7.75%, interest payable semi-annually, due 2027	42		42
Euro notes,1.000% to 3.125%, interest payable annually, due through 2031(2)	5,171		4,741
	29,471		28,042
Less current portion of long-term debt	1,500		1,000
	$	27,971	$	27,042

(1) Weighted-average coupon interest rate of 4.6% at December 31, 2020 and 2019.

(2) Weighted-average coupon interest rate of 2.0% at December 31, 2020 and 2019.

At December 31, 2020, aggregate maturities of Altria’s long-term debt were as follows:


(in millions)
2021		$	1,500
2022		2,900
2023		1,877
2024		2,400
2025		1,666
Thereafter		19,358
		29,701
Less:	debt issuance costs	151
	debt discounts	79
		$	29,471

At December 31, 2020 and 2019, accrued interest on long-term debt of $458 million and $470 million, respectively, was included in other accrued liabilities on Altria’s consolidated balance sheets.

▪Altria Senior Notes: In May 2020, Altria issued USD denominated long-term senior unsecured notes in the aggregate principal amount of $2.0 billion. The net proceeds from the notes were used for general corporate purposes, which included repayment of the borrowings in March 2020 under the Credit Agreement. The Notes contain the following terms:

▪$0.750 billion at 2.350%, due 2025, interest payable semiannually beginning November 6, 2020;

▪$0.750 billion at 3.400%, due 2030, interest payable semiannually beginning November 6, 2020; and

▪$0.500 billion at 4.450%, due 2050, interest payable semiannually beginning November 6, 2020.

All of Altria’s outstanding notes are senior unsecured obligations and rank equally in right of payment with all of Altria’s existing and future senior unsecured indebtedness. Upon the occurrence of both (i) a change of control of Altria and (ii) the notes ceasing to be rated investment grade by each of Moody’s, Standard & Poor’s and Fitch Ratings Ltd. within a specified time period, Altria will be required to make an offer to purchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest to the date of repurchase as and to the extent set forth in the terms of the notes.

During 2020, Altria repaid in full at maturity notes in the aggregate principal amount of $1.0 billion.

PM USA (the “Guarantor”), which is a 100% owned subsidiary of Altria Group, Inc. (the “Parent”), has guaranteed the Parent’s obligations under its outstanding debt securities, borrowings under its Credit Agreement and amounts outstanding under its commercial paper program (the “Guarantees”). Pursuant to the Guarantees, the Guarantor fully and unconditionally guarantees, as primary obligor, the payment and performance of the Parent’s obligations under the guaranteed debt instruments (the “Obligations”), subject to release under certain customary circumstances as noted below.

The Guarantees provide that the Guarantor guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of the Obligations. The liability of the Guarantor under the Guarantees is absolute and unconditional irrespective of: any lack of validity, enforceability or genuineness of any provision of any agreement or instrument relating thereto; any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure from any agreement or instrument relating thereto; any exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Obligations; or any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Parent or the Guarantor.

The Parent is a holding company; therefore, its access to the operating cash flows of its wholly owned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries. Neither the Guarantor nor other 100% owned subsidiaries of the Parent that are not guarantors of the Obligations are limited by contractual obligations on their ability to pay cash dividends or make other distributions with respect to their equity interests.

For a discussion of the fair value of Altria’s long-term debt and the designation of its Euro denominated senior unsecured notes as a net investment hedge of its investment in ABI, see Note 7. Financial Instruments.