Beam tenders for all 6.375% notes, $175 million of four other series

By Susanna Moon

Chicago, May 17 - Beam Inc. said it began tender offers for any and all of its $326,414,000 of outstanding 6.375% notes due 2014 as well as up to $175 million of four other note series.

The tender offers are part of the company's plans "to refinance a portion of its currently outstanding debt in a favorable interest rate environment," according to a company press release.

The tender offers will end at 11:59 p.m. ET on June 14.

Pricing for the offers will be set at 2 p.m. ET on June 3 using a reference security plus a fixed spread, with

• 6.375% notes based on the 0.75% U.S. Treasury note due June 15, 2014 plus 50 basis points;

• $59.3 million 8.625% debentures due 2021 based on the 1.75% Treasury note due May 15, 2023 plus 130 bps;

• $113,792,000 7.875% debentures due 2023 based on the 1.75% Treasury note due May 15, 2023 plus 155 bps;

• $200 million 6.625% debentures due 2028 based on the 1.75% Treasury note due May 15, 2023 plus 190 bps; and

• $300 million 5.875% notes due 2036 based on the 3.125% Treasury note due Feb. 15, 2043 plus 105 bps.

The notes covered by the maximum tender offer are listed in order of priority acceptance level.

The total purchase price will include a $30 early tender payment for each $1,000 principal amount of notes tendered by 5 p.m. ET on May 31.

Tendered notes may be withdrawn by the early tender date.

The company also will pay accrued interest up to but excluding the settlement date of June 10 for early tendered notes and June 17 for remaining tenders, according to a company press release.

BofA Merrill Lynch (888 292-0070 or collect 646 855-3401) and Credit Suisse (800 820-1653 or collect 212 325-2476) are the dealer managers. D.F. King & Co., Inc. (800 769-4414 or collect 212 269-5550) is the information agent and tender agent.

Beam, formerly Fortune Brands, Inc., produces and sells spirits. The company is based in Deerfield, Ill.

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