Vector Group Ltd. Completes $850 Million Unregistered Offering of Senior Secured Notes and Registered Offering of 2 Million Shares of Common Stock

January 27, 2017

S&C client Vector Group Ltd., a tobacco and real estate company, completed an unregistered offering of $850 million aggregate principal amount of its 6.125% senior secured notes due 2025. The notes were issued under Vector's Indenture, dated January 27, and are guaranteed by all of Vector's domestic subsidiaries engaged in the cigarette business. The notes are not guaranteed by Vector's real estate business, which owns 70.59 percent of Douglas Elliman. The notes were sold in reliance on Rule 144A and Regulation S. Also on January 27, Vector issued and sold 2,000,000 shares of the company's common stock, par value $0.10 per share, at a purchase price of $21.65 per share.

Vector used the net cash proceeds from the notes offering and the equity sale to redeem all of its outstanding 7.750% senior secured notes due 2021.

The S&C team advising Vector on the debt and equity transactions included Robert Downes, Marc Treviño, Inosi Nyatta, James Shea, Benjamin Kent, Jennifer Lee, Philip Mercadante, Kyra Ayo Caros and Carl Lundeholm. Davis Wang and Assaf Prussak advised on tax matters, and Justin Orr advised on intellectual property matters.