BELGIUM: Anheuser-Busch InBev issues bond
Anheuser-Busch InBev has further improved its finances by issuing US$3.25bn in bonds.
The issue includes $500m in floating rate notes and $1bn in fixed rate notes due 2013, as well as $750m and $1bn in fixed notes due 2015 and 2020 respectively, A-B InBev said yesterday (24 March).
"Today's $3.25bn bond offering along with the recently announced $17.2bn bank financing further improves our capital structure," said Felipe Dutra, chief financial officer of the Stella Artois and Budweiser brewer.
"The bonds allow us to refinance bank debt using less expensive funding and will provide us with additional undrawn capacity under our new $8bn revolving credit facility, thus improving the company's liquidity."
The notes are being offered and sold to certain qualified institutional investors in the US.
Earlier this month, the group declared InBev's $52bn acquisition of A-B as "essentially complete", following a refinancing deal with banks.
The new bonds will bear interest at 73 basis points above three-month LIBOR for the floating rate notes, at an annual rate of 2.500% for the 2013 notes, 3.625% for the 2015 notes, and 5% for the 2020 notes, which will mature on 26 March 2013, in the case of the floating rate note and the 2013 note, and on 15 April 2015, in the case of the 2015 note, and on 15 April 2020, in the case of the 2020 note.
As the fiscal and social maelstrom of the Great Recession started showing signs of abating, projections in October 2009 for the alcoholic drinks industry were relatively positive as most leading econo...
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