Anheuser-Busch adds $14 billion of bank debt ahead of Modelo purchase

By Lisa Kerner

Charlotte, N.C., June 29 - Anheuser-Busch InBev SA/NV entered into an agreement to acquire the remaining stake it does not already own in Grupo Modelo, SAB de CV for $9.15 per share in cash in a transaction valued at $20.1 billion.

Anheuser-Busch InBev, currently with a more than 50% economic stake in Grupo Modelo, said it has fully committed financing for the purchase of the outstanding shares.

In addition, Anheuser-Busch InBev has added $14 billion of additional bank facilities to existing liquidity through a new facility agreement.

The new facility provides for an $8 billion three-year term facility and a $6 billion term facility with a maximum maturity of two years from the funding date.

Anheuser-Busch InBev, a Leuven, Belgium-based brewer, said it now has total liquidity, between cash and long-term committed facilities, of more than $24 billion.

Anheuser-Busch InBev expects to be below its targeted net debt-to-normalized EBITDA ratio of 2 times during the course of 2014.

The combination will be completed through a series of steps that will simplify Grupo Modelo's corporate structure, followed by an all-cash tender offer by Anheuser-Busch InBev for all outstanding Grupo Modelo shares, the companies announced on Friday.

The tender price represents a premium of about 30% to the closing price of Grupo Modelo series C shares on June 22.

The transaction is subject to regulatory approvals in the United States, Mexico and other countries, the approval of Grupo Modelo shareholders and other customary closing conditions. It is expected to close during the first quarter of 2013.

Based in Mexico City, Grupo Modelo makes, distributes and markets beer.

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