Colombia: SABMiller’s Bavaria S. A. establishes $1.33 billion bond and commercial paper program

SABMiller PLC, a worldwide brewing and beverage company announced on March, 30 that unit Bavaria S.A., a producer of lager and other beverages in the Republic of Colombia, established a $1.33 billion bond and commercial paper program.

Bonds and commercial paper issued under the program are expected to be registered for trading in the secondary market of the Colombian Stock Exchange and admitted to the official list of the Cayman Islands Stock Exchange, the world’s No. 2 brewer said.

The program will be used primarily to refinance Bavaria S.A.'s existing $1.01 billion bonds by means of an exchange offer under which bondholders will be offered new securities in exchange for existing bonds.

The new securities will benefit from a guarantee by SABMiller, which is intended to place holders in a pari passu position with the holders of other unsecured debt obligations of SABMiller in the circumstances described in the program documents.

The program will also be available to fund working capital and for other purposes, although no issues other than the issue of new securities under the exchange offer are contemplated at this time.

30 March, 2011