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Anheuser-Busch takeover one step closer

August 29, 2008
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InBev said Thursday it completed its primary syndication phase of the committed financing for its $52 billion takeover of Anheuser-Busch. The combination will create the world’s largest brewer. The mandated lead arranger banks include Bank of America, BayernLB /Banque LBLux., Dresdner Bank, Intesa Sanpaolo., KBC Bank NV, Rabobak International,Scotia Capital, Société Générale and The Toronto-Dominion Bank. In July, InBev arranged committed financing with signed credit facilities from Banco Santander, Bank of Tokyo-Mitsubishi, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING Bank, JP Morgan, Mizuho Corporate Bank and Royal Bank of Scotland. The transaction will be financed with a $45 billion debt financing, including a $7 billion bridge financing facility for divestitures of non-core assets by both companies. In addition, InBev has received commitments for up to $9.8 billion in equity bridge financing, which will allow the company flexibility in deciding upon the timing and form of equity financing for a period of up to six months after closing of the combination. Standard & Poor’s recently gave the combined brewers a BBB+ credit rating. St. Louis-based Anheuser-Busch Cos. Inc. (NYSE: BUD), through its Anheuser-Busch Inc. subsidiary, is the leading domestic brewer, holding a 48.5 percent share of U.S. beer sales. It brews the world’s largest-selling beers, Budweiser and Bud Light as reported by the St. Louis Business Journal.

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