Heineken issued $ 3.25bn senior notes in order to finance for the Asia Pacific Breweries acquisition, which is not closed yet but approved at last week’s Fraser & Neave’s EGM.
Heineken issued following notes :
- $ 500m 3-year Notes with a coupon of 0.8%
- $ 1.25bn 5-year Notes with a coupon of 1.4%
- $ 1bn 10.5-year Notes with a coupon of 2.75%
- $ 500m 30-year Notes with a coupon of 4.0%
The successful pricing of above mentioned notes allows Heineken to cancel the € 2.5bn equivalent bridge loan engaged into for the intended APB acquisition.
Heineken hinted last week that the intended APB acquisition would have been EPS accretive already over the past twelve months (based on figures until June 2012 and with the assumption of a 3% interest cost). Today’s announcement confirms the attractive financing conditions. We stick to our BUY rating on the back of the improved geo-mix after the APB acquisition, the cost savings potential (€ 500m target over 2012-2014) and the attractive valuation.