By Aleesia Forni
New York, Jan. 13 – Anheuser-Busch InBev Finance Inc. sold $46 billion of senior notes (A2/A-) on Wednesday in the second-largest bond offering on record to help fund its acquisition of SABMiller, according to a market source.
There was $4 billion of 1.9% three-year notes sold at 99.729 to yield 1.993%, or Treasuries plus 85 basis points.
The notes came at the tightest side of the Treasuries plus 90 bps area guidance. Initial talk was set in the Treasuries plus 120 bps area.
A $7.5 billion 2.65% tranche of five-year notes sold at 99.687 to yield 2.717% with a spread of Treasuries plus 120 bps.
The notes were guided in the Treasuries plus 125 bps area and initially talked in the Treasuries plus 145 bps area.
A $500 million five-year floating-rate tranche sold at par to yield Libor plus 126 bps.
Also priced was $6 billion of 3.3% seven-year notes. The issue sold at 99.621 to yield 3.361%, or Treasuries plus 150 bps.
Pricing came at the tight end of the Treasuries plus 155 bps area guidance, tightened from the Treasuries plus 165 bps area.
And $11 billion of 3.65% 10-year bonds priced at 160 bps over Treasuries. The notes sold at 99.833 to yield 3.67%.
Guidance was in the Treasuries plus 165 bps area after having tightened from the Treasuries plus 180 bps area.
The company also sold $6 billion of 4.7% 20-year bonds at Treasuries plus 190 bps. Pricing was at 99.166 to yield 4.765%.
The notes were talked in the area of Treasuries plus 195 bps. Initial talk was in the Treasuries plus 210 bps area.
Finally, $11 billion of 4.9% 30-year bonds priced at 99.765 to yield 4.915%, or Treasuries plus 205 bps.
Guidance was in the Treasuries plus 210 bps area, having tightened from the Treasuries plus 225 bps area.
There is a guarantee by Anheuser-Busch InBev SA/NV, Anheuser-Busch InBev Worldwide Inc., Brandbev Sarl, Brandbrew SA, Cobrew NV and Anheuser-Busch Cos. LLC.
BofA Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are bookrunners and global coordinators. MUFG, Santander and Societe Generale are bookrunners.
Proceeds from the sale will be used to fund a portion of the purchase price for the acquisition of SABMiller and the remainder for general corporate purposes.
The brewery is based in Leuven, Belgium.
| Issuer: | Anheuser-Busch InBev Finance Inc.
|
| Guarantors: | Anheuser-Busch InBev SA/NV, Anheuser-Busch InBev Worldwide Inc., Brandbev Sarl, Brandbrew SA, Cobrew NV, Anheuser-Busch Cos. LLC
|
| Issue: | Senior notes
|
| Amount: | $46 billion
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc. (global coordinators), MUFG, Santander, Societe Generale
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 25
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $4 billion
|
| Maturity: | Feb. 1, 2019
|
| Coupon: | 1.9%
|
| Price: | 99.729
|
| Yield: | 1.993%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area, tightened from Treasuries plus 120 bps area
|
|
|
| Five-year notes
|
| Amount: | $7.5 billion
|
| Maturity: | Feb. 1, 2021
|
| Coupon: | 2.65%
|
| Price: | 99.687
|
| Yield: | 2.717%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, tightened from Treasuries plus 145 bps area
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2021
|
| Coupon: | Libor plus 126 bps
|
| Price: | Par
|
| Yield: | Libor plus 126 bps
|
| Price guidance: | Libor equivalent to five-year fixed-rate notes
|
|
|
| Seven-year notes
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| Amount: | $6 billion
|
| Maturity: | Feb. 1, 2023
|
| Coupon: | 3.3%
|
| Price: | 99.621
|
| Yield: | 3.361%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area, tightened from Treasuries plus 165 bps area
|
|
|
| 10-year notes
|
| Amount: | $11 billion
|
| Maturity: | Feb. 1, 2026
|
| Coupon: | 3.65%
|
| Price: | 99.833
|
| Yield: | 3.67%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 165 bps area, tightened from Treasuries plus 180 bps area
|
|
|
| 20-year bonds
|
| Amount: | $6 billion
|
| Maturity: | Feb. 1, 2036
|
| Coupon: | 4.7%
|
| Price: | 99.166
|
| Yield: | 4.765%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps area, tightened from Treasuries plus 210 bps area
|
|
|
| 30-year notes
|
| Amount: | $11 billion
|
| Maturity: | Feb. 1, 2046
|
| Coupon: | 4.9%
|
| Price: | 99.765
|
| Yield: | 4.915%
|
| Spread: | Treasuries plus 205 bps
|
| Price guidance: | Treasuries plus 210 bps area, tightened from Treasuries plus 225 bps area
|
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