Interbrew, the Belgian beer maker, announced on October 27 that it successfully completed a USD 850 million private placement. The issue, which comprised tranches of 6, 7 and 10 year Senior Unsecured Notes, was placed with a group of 20 international insurance companies, the company said The proceeds will be used to refinance existing bank debt.
Interbrew's decision to turn to the private placement market was based upon its ability to provide best relative value for its issue, which was oversubscribed due to investor demand in excess of USD 1.3 billion. The original issue size of USD 250 million was increased to USD 850 million in response to this overwhelming demand. The issue spread was one of the tightest spreads in the private placement market this year: Treasuries + 90 basis points for the 6, 7 and 10 year tranches, which translates into an after swap margin of less than 50 basis points.
"We are very pleased with the interest and confidence of so many long term investors in Interbrew as a quality name," said Franзois Jaclot, CFO of Interbrew. "This private placement will provide additional flexibility and allow the company to extend its debt maturity."
The Royal Bank of Scotland acted as Sole Agent for this private placement.
29 October, 2003
