UK: SABMiller prices seven-year Euro bond issue

By | 30 November 2012

SABMiller will use the proceeds to repay part of the debt from its Fosters acquisition

SABMiller will use the proceeds to repay part of the debt from its Foster's acquisition

SABMiller has completed the pricing of a seven-year bond issue in the Euro market, to repay debt from the group's acquisition of Foster's Group.

The issue consists of EUR1bn (US$1.3bn) 1.875% notes, due in January 2020, SABMiller said today (30 November). The issuance, through subsidiary SABMiller Holdings, is under the company's US$3bn Guaranteed Euro Medium Term Note Programme. 

SABMiller said proceeds will be used to "repay in part its bank borrowings incurred to finance the acquisition of Foster's Group Limited (for US$11.75bn) in December 2011". 

"We are delighted with the positive response we have received from investors to our first issue in the Euro market for three years, which was very competitively priced,” said SABMiller CFO, Jamie Wilson. 

“We believe this reflects the continuing strengths of SABMiller's business and brands.”

In January, SABMiller said it was selling US$7bn-worth of debt in order to help fund the Foster's acquisition

The issue is scheduled to close on Thursday (6 December), subject to customary conditions, the company said.

To read the company's official statement, click here.

Expert analysis

SABMiller plc (SAB) - Financial and Strategic SWOT Analysis Review

SABMiller plc (SABMiller) is a multinational brewing and beverage company. It is one of the world's leading brewers in the world with brewing interests and distribution agreements across six continents. The company together with its subsidiaries, offers lager, soft drinks and other beverages in global markets. SABMiller's wide portfolio of brands includes over 200 plus international and local brands. In the fiscal 2012, the company sold 286 million hectoliters of total beverage and 229 million hectolitres of lager. The brands portfolio of premium international beers brands include Grolsch, Miller Genuine Draft and Peroni Nastro Azzurro while domestic brands include Pilsner Urquell, Aguila, Miller Lite, Snow, Castle and Tyskie. The company's six brands rank among the top 50 in the world. SABMiller is also one of the largest bottlers of Coca-Cola products in the world. The company is headquartered in London, England, the UK.

Sectors: Beer & cider, Mergers & acquisitions

Companies: SABMiller, Foster’s

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