BELGIUM/US: A-B InBev completes US$5bn note issuance
The brewer said today (9 January) that the US$5bn pricing consists of $1.25bn notes due in 2014, $2.5bn notes due in 2019 and $1.25bn notes due in 2039. The notes will bear annual interest of 7.2% for the five-year notes, 7.75% for the ten-year notes and 8.2% for the 30-year-notes. Issued by Anheuser-Busch InBev Worldwide, a subsidiary of A-B InBev, the notes will be guaranteed by its parent company.
Net proceeds will be used "to repay a portion of the outstanding indebtedness incurred for the purpose of financing the acquisition of Anheuser-Busch," the company said.
The proceeds will be used to repay $3.5bn of Facility B (Bridge to Disposals) of the $45bn senior facility, which matures in November, and $1.5bn of Facility A (Bridge to Debt Capital Market) which matures in November next year.
"We are pleased with the successful completion of this capital markets transaction," said Felipe Dutra, CFO of Anheuser-Busch InBev. "The issuance of notes is in line with our commitment to refinance the bridge facilities under the US$45bn senior facility agreement and allows us to further term out the debt maturity profile of the company.
"While we remain on track and fully committed to our disposals process, this bond issuance provides us more flexibility when interacting with potential buyers."
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