Canada: Molson Coors completes cross-border senior notes private placement

Molson Coors Brewing Company announced on September 22 that one of its indirect wholly-owned subsidiaries, Molson Coors Capital Finance ULC, has successfully completed a Cdn. $900 million 10-year senior notes private placement in Canada and a U.S. $300 million five-year senior notes placement in the United States. The Canadian portion of the offering represents the 2nd largest Standard & Poor's (S&P) rated BBB issue in Canadian history and the largest 10-year BBB ever offered in Canada.

The senior notes offering, which consisted of two tranches - Cdn. $900 million in aggregate principal amount of 5.00% notes due 2015 and U.S. $300 million in aggregate principal amount of 4.85% notes due 2010 - represented the last step in the restructuring of the Molson Coors debt following the merger of Molson Inc. and Adolph Coors Company. Commenting on the announcement, Tim Wolf, Molson Coors chief financial officer, said "this financing is consistent with one of the merger objectives which was to simplify and streamline our debt structure." He also acknowledged the strong support and vote of confidence demonstrated by the investment community's interest in this milestone offering. "The underwriting group with whom we worked was instrumental in laying the foundation for the success of the record offering in Canada, as well as the portion marketed in the United States," he added.

The net proceeds from the private placement, amounting to approximately U.S. $1.05 billion will be used to repay borrowings under an existing credit facility on which Molson Coors Brewing Company, Coors Brewing Company and Molson Coors Capital Finance ULC were borrowers, and for general corporate purposes. At the end of the second quarter of 2005, there was approximately U.S. $980 million in borrowings outstanding under the credit facility. The senior notes are guaranteed by Molson Coors Brewing Company, Coors Brewing Company and certain other United States subsidiaries of Molson Coors Brewing Company.
The notes offering was underwritten and led by BMO Nesbitt Burns and TD Securities in Canada and JP Morgan and Morgan Stanley in the United States. The Canadian dollar denominated notes were sold in Canada to Canadian accredited investors and in compliance with Regulation S under the U.S. Securities Act of 1933, as amended, and the U.S. dollar denominated notes were sold in the United States only to qualified institutional buyers in reliance on Rule 144A. The notes will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Molson Coors Brewing Company is the fifth largest brewer in the world. It sells its products in North America, Europe, Latin America and Asia. Molson Coors is the leading brewer in Canada, the second largest in the U.K, and the third largest brewer in the U.S. The company's brands include Coors Light, Molson Canadian, Molson Dry, Carling, Kaiser, Coors, and Zima XXX. For more information on Molson Coors, visit the company's website, http://www.molsoncoors.com

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