Anheuser-Busch InBev holds $11 billion tender for 12 series of notes

By Susanna Moon

Chicago, Jan. 10 – Anheuser-Busch InBev SA/NV said wholly owned subsidiaries Anheuser-Busch InBev Worldwide Inc., Anheuser-Busch Cos., LLC and Anheuser-Busch InBev Finance Inc. are offering to purchase 12 series of notes for an aggregate purchase price of $11 billion, excluding accrued interest, until 11:59 p.m. ET on Feb. 7.

The tender offers will be organized across five pools, each with a cap that may be adjusted if at least one of the pools is undersubscribed and another is oversubscribed, according to a company announcement.

The early tender deadline is 5 p.m. ET on Jan. 24. Tendered notes may be withdrawn before the early deadline.

Pricing will be set at 11 a.m. ET on the business day following the early tender deadline using a reference security plus a fixed spread for a total purchase price that includes an early premium of $30 for each $1,000 principal amount of notes tendered by the early deadline.

The total purchase price per $1,000 principal amount will be $1,013.75 for the floating-rate notes due 2021 and $982.50 per $1,000 principal amount of floating-rate notes due 2024.

Holders also will receive accrued interest up to but excluding the settlement date.

2021 pool offer

In the 2021 pool offer, the company is offering to pay up to $2.4 billion to purchase the following series, with notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount:

• $4,967,588,000 2.65% notes due 2021 with pricing to be set using the 2.5% Treasury notes due Dec. 31, 2020 plus 50 basis points for a total hypothetical purchase price of $991.96;

• $500 million floating-rate notes due 2021 for a total purchase price of $1,013.75; and

• $500 million 4.375% notes due 2021 with pricing to be set using the 2.5% Treasury notes due Dec. 31, 2020 plus 60 bps for a total hypothetical purchase price of $1,023.24.

2022 pool offer

In the 2022 pool offer, the company is offering to pay up to $2.5 billion to purchase the following series, with notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount to be set using the 2.5% Treasury notes due Jan. 15, 2022 plus a fixed spread:

• $2,350,039,000 of 3.75% notes due 2022 with pricing to be set using a spread of 85 bps for a total hypothetical purchase price of $1,009.54; and

• $3 billion 2.5% notes due 2022 with pricing to be set using a spread of 90 bps for a total hypothetical purchase price of $969.40.

2023 pool offer

In the 2023 pool offer, the company is offering to pay up to $3 billion to purchase the following series, with notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount to be set using the 2.625% Treasury notes due Dec. 31, 2023 plus a fixed spread:

• $1.25 billion 2.625% notes due 2023 with pricing to be set using a spread of 105 bps for a total hypothetical purchase price of $964.13; and

• $6 billion 3.3% notes due 2023 with pricing to be set using a spread of 105 bps for a total hypothetical purchase price of $988.58.

2024 pool offer

In the 2024 pool offer, the company is offering to pay up to $1.5 billion to purchase the following series, with notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount:

• $500 million floating-rate notes due 2024 for a total purchase price of $982.50;

• $1.5 billion 3.5% notes due 2024 with pricing to be set using the 2.625% Treasury notes due Dec. 31, 2023 plus 115 bps for a total hypothetical purchase price of $990.57; and

• $1.4 billion 3.7% notes due 2024 with pricing to be set using the 2.625% Treasury notes due Dec. 31, 2023 plus 120 bps for a total hypothetical purchase price of $997.25.

2026 pool offer

In the 2026 pool offer, the company is offering to pay up to $1.6 billion to purchase the following series, with notes listed in order of priority acceptance levels and pricing for each $1,000 principal amount to be set using the 3.125% Treasury notes due Nov. 15, 2028 plus a fixed spread:

• $2,444,837,000 3.65% notes due 2026 with pricing to be set using a spread of 140 bps for a total hypothetical purchase price of $971.70; and

• $8,555,163,000 3.65% notes due 2026 with pricing to be set using a spread of 140 bps for a total hypothetical purchase price of $971.70.

The total hypothetical purchase price for each $1,000 principal amount was set using the yield of the U.S. Treasury reference security for that series as of 11 a.m. ET on Jan. 9 assuming a final settlement date of Feb. 11.

The dealer managers are Barclays (212 528-7581 or 800 438-3242), BofA Merrill Lynch (980 683-3215 or 888 292-0070) and Deutsche Bank Securities (212 250-2955 or 866 627-0391). The tender and information agent is Global Bondholders Services Corp. (212 430-3774, 866 470-3800, fax 212 430-3775 or 212 430-3779).

The issuer is a brewery based in Leuven, Belgium.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.