UK & South Africa: SABMiller announces US$1.75 billion bond issue and debt refinancing

SABMiller plc, the world's second largest brewer by volume, announced June 28 that it has successfully priced a US$1.75 billion note issue. The notes will be issued pursuant to Rule 144A under the US Securities Act in three tranches:

US$300 million of 3-year floating rate notes;
US$600 million of 5-year notes with a coupon of 6.20%; and
US$850 million of 10-year notes with a coupon of 6.50%.

The net proceeds of the offering of the notes will be used to repay certain existing loan facilities. The issues are scheduled to close on 5 July 2006 subject to customary conditions.

Malcolm Wyman, Chief Financial Officer, said “SABMiller is very pleased that US bond investors have reaffirmed their recognition of the strength of the company’s broad geographical business spread, leading brand portfolio and cash flow generation to enable us to undertake this important refinancing at such competitive levels.”

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities discussed herein or an invitation or inducement to purchase such securities.

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