GLOBAL: AB InBev gets record 75 billion dollars loan to purchase SABMiller | Progresiv
Anheuser-Busch InBev NV said it obtained 75 billion dollars of loans to back its acquisition of SABMiller Plc, in what is the biggest corporate loan on record. 
The senior facilities will be divided into five parts, according to an investor presentation on AB InBev’s website. Allen & Overy advised lenders including Banco Santander SA, Bank of America Corp., Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Plc, BNP Paribas SA and Deutsche Bank AG, according to a statement from the law firm.
“AB InBev’s ability to raise 75 billion dollars in the loan markets in the space of a few weeks shows that banks are still willing to support top-class borrowers in record amounts, despite the current era of increased regulatory and capital costs,” Nicholas Clark, a partner at A&O in London, said in the statement. “This is the largest commercial loan in the history of the global loan markets, far surpassing pre-crisis values.”
AB InBev made a formal 107 billion dollars offer to buy SABMiller, sealing a long-anticipated deal that combines the world’s biggest brewers into a company controlling about half the industry’s profit. Borrowing to fund the takeover may bring AB InBev’s net debt to 4.5 times earnings before interest, taxes, depreciation and amortization, according to Trevor Stirling of Sanford C. Bernstein. It was at 2.5 at the end of the second quarter.
There are more than 20 banks in the lending group, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly. While part of the loan will be replaced by bonds, a sale may not come for about nine months because of regulatory approvals, the people said.
The loans are structured so that interest will increase over time to encourage the company to refinance, according to the people. The bonds will be sold in different currencies at various maturities, the people said. (www.esmmagazine.com)
