By Andrea Heisinger
New York, Jan. 11 - SABMiller Holdings Inc. sold $7 billion of notes (Baa1/BBB+/BBB+) in four parts late on Tuesday, according to a press release.
The $1 billion of 1.85% three-year notes priced at a spread of Treasuries plus 150 basis points.
There was also $2 billion of 2.45% five-year notes priced to yield Treasuries plus 165 bps.
A third tranche of $2.5 billion in 3.75% 10-year notes priced at 185 bps over Treasuries.
Finally, there was $1.5 billion of 4.95% 30-year bonds sold at a spread of Treasuries plus 200 bps.
The tranches were priced under Rule 144A and Regulation S.
Full terms were not available at press time on Wednesday.
All of the notes were priced 10 bps tighter than guidance, which was in the case of the three-year tranche, the 160 bps area, the five-year notes the 175 bps area, the 10-year debt the 195 bps area and the 30-year bonds the 210 bps area.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC. Passive bookrunners were BBVA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc. and Santander Investment Securities Inc.
Proceeds are being used to repay part of the bank borrowings incurred to finance the acquisition of Fosters Group Ltd. in December of 2011.
The notes are guaranteed by SABMiller plc.
The brewer is based in London.
| Issuer: | SABMiller Holdings Inc.
|
| Guarantor: | SABMiller plc
|
| Issue: | Notes
|
| Amount: | $7 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC (active), BBVA Securities Inc., Citigroup Global Markets Inc., Mizuho Securities USA Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., Santander Investment Securities Inc. (passive)
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | Jan. 10
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2015
|
| Coupon: | 1.85%
|
| Spread: | Treasuries plus 150 bps
|
| Price talk: | 160 bps area
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | 2017
|
| Coupon: | 2.45%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | 175 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | 2022
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | 195 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | 2042
|
| Coupon: | 4.95%
|
| Spread: | Treasuries plus 200 bps
|
| Price talk: | 210 bps area
|
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