CVC details €690 million loan for purchase of Anheuser-Busch assets

By Sara Rosenberg

New York, Oct. 19 - CVC Capital Partners has raised a €690 million credit facility to help fund its acquisition of Anheuser-Busch InBev's Central European operations, and details on the structure of that facility have surfaced, according to an informed source.

The facility consists of a €75 million five-year revolver priced at Euribor plus 525 basis points, an €80 million three-year term loan A priced at Euribor plus 475 bps, a €230 million five-year term loan B-1 priced at Euribor plus 525 bps and a €305 million five-year term loan B-2 priced at Euribor plus 575 bps, the source said.

There were 13 banks involved in the credit facility - Barclays Capital, BAWAG P.S.K., BNP Paribas Fortis, CSOB, Erste Group, HSBC, Intesa San Paolo, ING, J.P. Morgan, KfW IPEX-Bank, Mediobanca, Societe Generale CIB and UniCredit Group.

Under the terms of the agreement, CVC is buying Anheuser-Busch's operations in Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia.

CVC has also agreed to brew and/or distribute Stella Artois, Beck's, Löwenbräu, Hoegaarden, Spaten and Leffe in the above countries under license from Anheuser-Busch.

The transaction has an enterprise value of $2.231 billion and additional rights to a future payment estimated to be as much as $800 million contingent on CVC's return on its initial investment.

The transaction is expected to close by January 2010, subject to customary conditions, including regulatory clearances.

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