Anheuser-Busch InBev pays down debt
Sep. 30, 2019 3:21 PM ET
By: Clark Schultz, SA News Editor
Anheuser-Busch InBev (BUD +1.1%) is wasting no time retiring debt after bringing in some extra funds through the Budweiser Brewing Company IPO in Hong Kong.
The beer giant exercised an option to redeem in full three outstanding notes issued by itself and subsidiaries.
The total amount being redeemed is $2.97B worth of U.S. notes and €1.75B worth of European notes.
SEE ALL THE GREAT INFO HERE
file:///C:/Users/Follo/Downloads/ABI%20Announces%20Redemption%20-%20Press%20Release%2009-30-2019%20EN.pdf
Anheuser-Busch InBev Announces Redemption
of USD 2.97 Billion and EUR 1.75 Billion Notes
Brussels, 30 September 2019 -- Anheuser-Busch InBev SA/NV (“AB InBev”) (Euronext: ABI) (NYSE: BUD)
(MEXBOL: ANB) (JSE: ANH) today announced that it and its wholly-owned subsidiaries Anheuser-Busch
InBev Worldwide Inc. (“ABIWW”) and Anheuser-Busch InBev Finance Inc. (“ABIFI”) are exercising their
respective options to redeem the outstanding principal amounts indicated in the table below of the following
series of notes on 29 October 2019 (the “Redemption Date”):
Issuer
Aggregate Principal
Amount Outstanding
Aggregate Principal
Amount to be
Redeemed Title of Series of Notes ISIN
AB InBev EUR 1,750,000,000 EUR 1,750,000,000 0.625% Notes due 2020
(the "EUR Notes")
BE6285451454
ABIFI USD 2,449,067,000 USD 2,449,067,000 2.650% Notes due 2021
(the “ABIFI Notes”)
US035242AJ52
ABIWW USD 1,704,047,000 USD 525,000,000(1)
2.500% Notes due 2022
(the “ABIWW Notes” and,
together with the ABIFI
Notes, the “USD Notes”)
(the USD Notes together
with the EUR Notes, the
"Notes")
US03523TBP21
(1) ABIWW is electing to partially redeem the ABIWW Notes.
The EUR Notes will be redeemed in accordance with the Conditions of the EUR Notes in full on the
Redemption Date at a make-whole price equal to (i) the outstanding principal amount of the EUR Notes; or
(ii) if higher, the sum, as determined by the Calculation Agent, of the present values of the remaining
scheduled payments of principal and interest on the EUR Notes to be redeemed (not including any portion
of such payments of interest accrued to the date of redemption) discounted to the Redemption Date on an
annual basis (assuming a 360-day year consisting of twelve 30-day months) at the rate per annum equal
to the equivalent yield to maturity of the CA Selected Bond calculated using a price for the CA Selected
Bond (expressed as a percentage of its principal amount) equal to the Reference Bond Price for the
Redemption Date plus 15 basis points (the "EUR Redemption Price"). The EUR Redemption Price will be
calculated on the third Business Day preceding the Redemption Date. Capitalized terms used in this
paragraph have the meanings assigned to such terms in the Conditions of the EUR Notes.
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Brussels / 30 September 2019 / 14:30 CET
ab-inbev.com
Press release
The ABIFI Notes will be redeemed in full on the Redemption Date at a make-whole redemption price equal
to the greater of (i) 100% of the aggregate principal amount of the ABIFI Notes to be redeemed and (ii) as
determined by the Independent Investment Banker, the sum of the present values of the remaining
scheduled payments of principal and interest on the ABIFI Notes to be redeemed as if the Notes matured
on January 1, 2021 (not including any portion of such payments of interest accrued to the Redemption
Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve (12) 30-day months) at the Treasury Rate plus 20 basis points; plus, in each case described above,
accrued and unpaid interest on the principal amount being redeemed to (but excluding) such Redemption
Date (in each case, the “ABIFI Redemption Price”). The Treasury Rate will be calculated on the third
Business Day preceding the Redemption Date. Such redemption is pursuant to the terms of the Indenture,
dated as of 25 January 2016, by and among ABIFI, AB InBev, the subsidiary guarantors named therein and
The Bank of New York Mellon Trust Company, N.A., as trustee (the “January 2016 Indenture”), the Second
Supplemental Indenture thereto, dated as of 25 January 2016 (the “Second Supplemental Indenture”), and
the terms of the ABIFI Notes. Capitalized terms used in this paragraph have the meanings assigned to such
terms in the January 2016 Indenture, the Second Supplemental Indenture and the terms of the ABIFI Notes,
as applicable.
USD 525,000,000 aggregate principal amount of the ABIWW Notes will be redeemed on the Redemption
Date at a make-whole redemption price equal to the greater of (i) 100% of the aggregate principal amount
of the ABIWW Notes to be redeemed; and (ii) as determined by the Independent Investment Banker, the
sum of the present values of the applicable remaining scheduled payments of principal and interest on the
ABIWW Notes to be redeemed (not including any portion of such payments of interest accrued to the
Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points; plus, in each case described
above, accrued and unpaid interest on the principal amount being redeemed to (but excluding) such
Redemption Date (in each case, the “ABIWW Redemption Price”, and together with the EUR Redemption
Price and the ABIFI Redemption Price, the "Redemption Price"). The Treasury Rate will be calculated on
the third Business Day preceding the Redemption Date. Such redemption is pursuant to the terms of the
Indenture, dated as of 16 October 2009, by and among ABIWW, AB InBev, the subsidiary guarantors
named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the “October 2009
Indenture”), the Twenty-Seventh Supplemental Indenture thereto, dated as of 16 July 2012 (the “TwentySeventh Supplemental Indenture”), and the terms of the ABIWW Notes. Capitalized terms used in this
paragraph have the meanings assigned to such terms in the October 2009 Indenture, the Twenty-Seventh
Supplemental Indenture and the terms of the ABIWW Notes, as applicable.
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Press release
On the Redemption Date, (i) the EUR Notes and the ABIFI Notes will no longer be deemed outstanding, (ii)
USD 1,179,047,000 principal amount of the ABIWW Notes will remain outstanding, (iii) the Redemption
Price will become due and payable on the Notes, as applicable, and, (iv) unless AB InBev, ABIWW or ABIFI
default in making payment of the Redemption Price, interest on the Notes called for redemption shall cease
to accrue on and after the Redemption Date.
The trustee and the Domiciliary Agent are transmitting to registered holders of the Notes the notices of
redemption containing information required by the October 2009 Indenture, the January 2016 Indenture,
the Twenty-Seventh Supplemental Indenture, the Second Supplemental Indenture, the terms of the ABIWW
Notes, the terms of the ABIFI Notes and the terms in the Conditions of the EUR Notes, as applicable. For
the redemption price of the USD Notes, please contact Shannon Matthews at BNY Mellon
(shannon.matthews@bnymellon.com) and for the EUR Notes please contact BNP Paribas Fortis
(cmops.securitiesoperations.cb@bnpparibasfortis.com).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor
will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the securities laws of any such state or
other jurisdiction.
English, Dutch and French versions of this press release will be available on www.ab-inbev.com.
