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UDPATE 1-AB InBev completes takeover loan refinancing
February 26, 2010 / 1:21 PM / in 8 years

UDPATE 1-AB InBev completes takeover loan refinancing

* $17.2 bln long-term facility completes refinancing

* Includes non-cash expenses of $186 mln in H1 2010

* Also $150 mln in mark-to-market adjustments in H1 2010

(Adds detail)

AMSTERDAM, Feb 26 (Reuters) - Anheuser-Busch InBev (ABI.BR) has completed the refinancing of an initial $54 billion loan facility taken out when it was created through the purchase by Belgian brewer InBev of U.S. rival Anheuser-Busch in 2008.

AB InBev (BUD.N) obtained a $17.2 billion long-term bank facility, consisting of a $8 billion five-year revolving loan, a $5 billion three-year loan and a $4.2 billion long-term bilateral loan.

The move came as highly-rated blue-chip corporate borrowers such as Henkel (HNKG_p.DE) (HNKG.DE) and Philips (PHG.AS) take advantage of lower loan pricing and longer five-year loan tenors to cut borrowing costs and stretch the maturity of their debt [ID:nLDE61A1VS].

AB InBev will take about $150 million in mark-to-market downward adjustments in both the first and second quarter this year as an interest rate swap on part of the original facility would no longer be effective, the company said.

The brewer’s finance costs in the first and second quarter this year would include incremental non-cash accretion expenses of $29 million and $157 million, respectively. (Reporting by Gilbert Kreijger; Editing by David Holmes)

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