BELGIUM/US: Anheuser-Busch InBev pays off more debt
Anheuser-Busch InBev has made an early payment of US$3.7bn to further repay debt taken on to finance the formation of the brewer last year.
The payment has reduced an $8.9bn 'Facility C' debt due to mature on November 2011 to $5.2bn, A-B InBev said late yesterday (15 December). The original debt tranche was $13bn.
The Belgium-based brewer now has $17.2bn outstanding from InBev's $54.8bn acquisition of Anheuser-Busch in late 2008. Most repayments are not due until November 2013.
Following the $3.7bn payment, finance costs in the fourth quarter will include incremental accretion expenses of $39m and a one-time loss of approximately $221m, as interest rate swaps hedging the re-paid parts of 'Facility C' are no longer effective, said the Budweiser and Stella Artois brewer.
Additionally, the company expects to incur incremental accretion expenses of $21m and a one-time, non-cash loss of $29m related to the repayment of debt outstanding under its EUR2.5bn syndicated facility.
Earlier this month, A-B InBev completed the sale of brewing assets across Eastern Europe to private equity group CVC Capital.
The deal nets A-B InBev an initial $2.2bn, but the brewer could receive a further $800m depending on the performance of the businesses under CVC Capital.
A-B Inbev has disposed of more than $7bn in assets over the last 12 months, to help it pay for the A-B deal.
China's Guangzhou Zhujiang Brewery, which is 24%-owned by Anheuser-Busch InBev, is planning to raise up to RMB1bn (US$146M) via a share offering, according to a report....
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