| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Molson Coors Brewing Co. > News item |
Molson Coors terminates $1.9 billion 364-day bridge loan facility
By Jennifer Chiou
New York, May 3 - Molson Coors Brewing Co. has terminated its $1.9 billion bridge loan due April 2, 2013 with Morgan Stanley Senior Funding, Inc. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
As announced last month, the company entered into agreements for $2.5 billion of credit facilities on Tuesday to help fund its acquisition of StarBev Holdings Sarl.
The filing stated that the company had not borrowed any amounts under the bridge loan.
In addition to the now-terminated bridge loan, the credit facilities include a $300 million term loan due April 3, 2016 and a $300 million revolver due April 3, 2016.
As reported, the interest rate for the term loan will be Libor plus 125 basis points to 250 bps. The commitment fee will be 15 bps to 37.5 bps.
Deutsche Bank AG, New York Branch is the administrative agent for the term loan.
The interest rate for the revolver is based on Libor or, for Canadian loans, CDOR plus 50 bps. In each case, the margin will be 125 bps to 250 bps, and the commitment fee will be 15 bps to 37.5 bps.
The revolver has a $100 million accordion feature.
Borrowings under the revolver can be made in U.S. dollars, Canadian dollars, British pounds sterling or euros.
Deutsche Bank AG, New York Branch is the administrative agent, and Deutsche Bank AG, Canada Branch, is the Canadian administrative agent.
The credit facilities require the company to maintain a leverage ratio of no more than 4.0 to 1.0 during the period from April 3 to Sept. 30, 3.75 to 1.00 during the period from Oct 1, 2012 to March 31, 2013 and 3.50 to 1.0 thereafter.
The total purchase price for Starbev is €2.65 billion, including the payoff of existing Starbev debt. Molson Coors will pay €500 million of the purchase price through the issuance of a convertible note to the seller, StarBev LP.
Molson Coors is a brewer based in Montreal and Denver. StarBev is a brewer based in Amsterdam and Prague.
© 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.