E-Malt.com News article: 1720

Dutch brewer Heineken has said it will launch a €1.1 billion Eurobond. The company said positive reaction of the investment community resulted in an over subscription of more than four times the issued amount. Application has been made to list the bonds on the Luxembourg Stock Exchange, which is expected to take place on November 4, 2003.

The proceeds of the offering will be used to finance the BBAG acquisition and for general corporate purposes. The remaining financing requirement is expected to be funded by means of a syndicated revolving credit facility. As reported earlier in the week, the offering is comprised of two tranches. The first tranche amounts to €500m, has a maturity of 6.25-years, and is priced at 43 basis points over mid-swap rates, achieving a coupon of 4.375%. This tranche will be due on February 4, 2010.

The second tranche amounts to €600m, has a maturity of 10 years, and is priced at 63 basis points over mid-swap rates, achieving a coupon of 5%. This tranche will be due on November 4, 2013. The payment date for both tranches is November 4, 2003.

Barclays Capital, Citigroup, Credit Suisse First Boston and JPMorgan acted as joint bookrunners for this transaction. ABN AMRO, HSBC, ING, and Societe Generale acted as co-managers.


24 October, 2003