Canaccord Genuity Hawkpoint advises SABMiller on US$2bn bond issue

SABMiller launched a three-part bond issue for a total of $2bn, split as follows:

  • $600m of 5 year bonds with 4.25% coupon (spread: 113bp) issued by Miller Brewing company
  • $1.1bn of 10 year bonds with 5.5% coupon (spread: 128bp) issued by Miller Brewing company
  • $300m of 30 year bonds with 6.625% coupon (spread: 143bp) issued by SABMiller plc

The proceeds from the Miller issues will be used to refinance a substantial portion of a $2bn bridge loan from the Miller acquisition that matures during March 2004, while the funds raised by the SABMiller plc issue will be used for general corporate purposes. The Miller issues will be guaranteed by SABMiller plc and SABMiller Finance B.V. and the debt securities issued by SABMiller plc will be guaranteed by its subsidiaries, Miller and SABMiller Finance B.V.

The bonds are sold in the US via Rule 144A and internationally under Regulation S, with listing in London

Joint lead managers and bookrunners are Barclays Capital, Citigroup and J.P. Morgan Securities

Total demand was c. $4.5bn from 150 investors

It is the first time SABMiller/Miller Brewing has come to the US corporate bond market and has been assigned its first time rating by the main credit rating agencies:

  • Moody's: Baa1 senior unsecured long term rating
  • Standard & Poor's: BBB+ senior unsecured long term rating
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