Citibank Arranges Japan Tobacco's First Syndicated Loan.

LONDON--(BUSINESS WIRE)--April 23, 1999--

The syndication of the Japan Tobacco Inc (JT) US$ 5 billion equivalent 364-day term loan (the Facility) has been successfully completed. The Facility will be used to partially finance JT's proposed acquisition of the non-US tobacco business of RJR Nabisco Inc. (RJRI).

The acquisition of RJRI, which is currently headquartered in Geneva, would significantly enhance JT's profile in Europe and elsewhere around the world: after giving effect to the acquisition, the combined operation would generate nearly 45% of its total sales outside Japan. The acquisition was announced on 9 March 1999 and JT intends to make the acquisition payment of approximately US$ 7.83 billion through drawings under the Facility and through existing cash.

Citibank NA is acting as Global Coordinator, Lead Arranger and Agent for the Facility, which represents JT's first-ever syndicated credit facility.

The Facility is divided into two tranches: a US$ 3 billion dollar-denominated tranche based on LIBOR; and a US$ 2 billion equivalent yen-denominated tranche based on TIBOR. Two tiers were offered during the syndication: Senior Arrangers for initial commitments of $500 million each; and Arrangers for initial commitments of $200 million each.

The transaction received a tremendous response from the market and attracted commitments from 26 banks through a coordinated effort in Asia and Europe. With the success of the syndication JT has broadened its bank coverage by establishing its relationships to include European and North American banks and strengthening its existing relationships with Japanese institutions. Given the enthusiastic response that the deal received in the market, Citibank proposed that a general syndication should not be necessary and JT agreed with this proposal.

Closing is scheduled for 28 April.

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