BELGIUM/US: Anheuser-Busch InBev pays off more debt

By just-drinks.com editorial team | 16 December 2009

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.

Sectors: Beer & cider

Companies: InBev