BELGIUM: A-B InBev pays down debt with bond issue

By | 14 October 2009

Anheuser-Busch InBev has said it will use bond issues worth a total US$5.5bn to help it pay down more of Inbev's $52bn takeover of the Budweiser last year.

A-B InBev said today (14 October) that it priced $5.5bn in aggregate notes, with $1.5bn due 2012, $1.25bn due 2015, $2.25bn due 2020 and $0.5m due 2040. They will be sold to qualified institutional investors in the US, the brewing giant said.

"While we had no immediate needs to re-visit the capital markets given pre-funding actions in 1H09, this transaction further enhances our financial flexibility," said A-B InBev chief finance officer Felipe Dutra.

"The majority of the proceeds will be used to repay Facility C of our acquisition financing, which matures in November 2011, more than two years ahead of schedule."

Guaranteed by A-B InBev, the notes will bear interest at an annual rate of 3.000% for the 2012 notes, 4.125% for the 2015 notes, 5.375% for the 2020 notes and 6.375% for the 2040 year notes and will mature on 15 October, 2012 and 15 January, 2015, 2020 and 2040, respectively.

Last week, A-B InBev moved close to its assets disposals target of $7bn, after announcing a deal to sell theme parks previously owned by A-B for $2.7bn.


Sectors: Beer & cider

Companies: InBev, Anheuser-Busch

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