STG Issuing €300 Million Bond

Scandinavian Tobacco Group (STG)—the parent company of Cigars International, General Cigar Co. and others—has announced that it will issue €300 ($332.5 million) million in bonds next week.

On Sept. 12, the company will list a five-year senior unsecured note with a principal amount of €300 million. It will mature in September 2029 with a coupon of 4.875 percent. It will be issued via Euronext Dublin with Citigroup Global Markets Europe AG, Danske Bank A/S, Jyske Bank A/S and Nordea Bank Abp acting as joint bookrunners.

The company said that “proceeds of the offering will be used for general corporate purposes, including to refinance certain existing debt.”

STG, which is publicly traded on the NASDAQ Copenhagen, has a large premium cigar portfolio that includes retailers such as Cigars International, Cigar.com, Cigarbid.com, Thompson Cigar, PipesandCigars.com and Cigora. It also owns General Cigar Co. and Forged Cigar Co., which sell Cohiba, La Gloria Cubana, Partagas and other brands in the U.S. In both the U.S. and international markets, it sells Agio, Alec Bradley, CAO, Macanudo, Room101 and Toraño. STG also has a strong machine-made cigar business, especially in Europe, as well as units that include pipe tobacco, roll-your-own and tobacco-free nicotine products.

When it comes to acquisitions, no premium cigar space has been more active than STG. In a nearly six-year span, STG made eight acquisitions:

• January 2018 — Thompson Cigar
• July 2018 — Peterson Pipe Group
• January 2020 — Agio
• November 2021 — Moderno Opificio del Sigaro Italiano
• June 2022 — Room101
• February 2023 — Alec Bradley
• April 2023 — XQS
• July 2024 — Mac Baren Tobacco Co.