Friday, British brewer SABMiller plc (SAB.L) revealed the successful pricing of a US $1.25 billion bond issue. The notes will be issued in two tranches - as US $550 million of 5.5-year notes with a coupon of 5.70% and as US $700 million of 10-year notes with a coupon of 6.50%. The issues are scheduled to close on July 17.
The maker of Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell, expects to use net proceeds from the offering to repay certain debts.
Commenting on the offering, Malcolm Wyman, Chief Financial Officer of the company, said, "We are very pleased that US bond investors have reaffirmed their recognition of the strength of the company's broad geographical business spread, leading brand portfolios and cash flow generation to enable us to undertake this important refinancing at highly competitive levels."
Later in the day, the brewer submitted to the Financial Services Authority a prospectus relating to the new issue of bonds and debt refinancing. SABMiller expects the new bonds to be admitted to the Official List of the UK Listing Authority. The trading is expected to commence on the Regulated Market of the London Stock Exchange on July 17.
With consolidation being the buzzword in the industry now, SABMiller, the world's largest brewer by volume, last month revealed an agreement to acquire Russian brewer LLC Vladpivo. The value of the gross assets to be acquired was about US $69 million. The purchase price was not disclosed.
Meanwhile, SABMiller's Belgium-based competitor InBev NV, the largest brewer in the world by sales, last month offered to buy U.S. brewer Anheuser-Busch Inc. (BUD)for about $46.3 billion. The offer was rejected by the U.S. brewer, however discussions are reportedly still continuing.
In another recent development, SABMiller said on Tuesday that it completed an agreement with Anheuser-Busch to transfer the U.S. importation rights for the Grolsch brand to its U.S. joint venture, MillerCoors.
SAB.L closed Friday's regular trading on the London Stock Exchange at 1,025 pence, down 35 pence or 3.30% from the previous close, on 6.19 million shares. For the past year, the stock trended in the 995-1,547 pence range.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.