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Asia-PacificMarch 1 2012

Thirst for Foster's boosts SABMiller deal

SABMiller's need to finance its $12.3bn takeover of Foster's saw it issue a $7bn multi-tranche Yankee. The result defied even the most optimistic of expectations, with high demand seeing the brewer come close to refinancing its bridging loan of $8bn in one fell swoop.
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SABMiller’s acquisition of Australian lager brand Foster’s was one of the most exciting corporate transactions of 2011. An A$11.5bn ($12.3bn) takeover, the deal was big, bold and well timed, cementing SABMiller’s position as a pre-eminent player in the global brewing industry. It also left the company with $12.5bn of acquisition finance, including a $8bn bridging loan with a maximum two-year maturity.

“We completed the Foster’s acquisition in December but from the moment the deal went friendly in late September, we were not only preparing for settlement of the transaction; we were also anticipating the point at which it would make sense to refinance the banking facility,” says SABMiller group treasurer David Mallac.

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