InBev Completes Primary Syndication Phase of Committed Financing

InBev has reported that it received strong support from its key relationship banks providing positive momentum to the transaction ahead of a round of general syndication to take place in September 2008.

29/08/08 InBev has announced the successful completion of the primary syndication phase of the committed financing for the combination of InBev and Anheuser- Busch.

InBev has reported that it received strong support from its key relationship banks providing positive momentum to the transaction ahead of a round of general syndication to take place in September 2008.

Felipe Dutra, CFO of InBev said, "I am pleased that the banking community recognizes the merits of the proposed combination between Anheuser-Busch and InBev, creating the world's leading brewer, and has fully subscribed to the primary syndication of the committed financing relating to the transaction. Following the closure of the primary syndication phase the Mandated Lead Arranger (MLA) group now represents a very diversified group of strong banks, giving InBev access to all significant capital markets. The MLA group of banks consists of: Bank of America, BayernLB / Banque LBLux S.A., Dresdner Bank AG, Intesa Sanpaolo S.p.A., KBC Bank NV, Rabobank International, Scotia Capital, Société Générale, and The Toronto-Dominion Bank."

In July 2008, InBev arranged fully committed financing with signed credit facilities from a group of leading financial institutions, including Banco Santander, Bank of Tokyo- Mitsubishi, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING Bank, JP Morgan, Mizuho Corporate Bank and Royal Bank of Scotland. The transaction will be financed with a $45 billion debt financing, including a $7 billion bridge financing facility for divestitures of non-core assets by both companies. In addition, InBev has received commitments for up to $9.8 billion in equity bridge financing, which will allow the company flexibility in deciding upon the timing and form of equity financing for a period of up to six months after closing of the combination. The combined entities have recently been assigned a BBB+ (stable outlook) credit rating by Standard & Poor’s. The rating reflects management's commitment to a strategy aimed at a rapid deleveraging of the balance sheet, through strong free cash flow generation.