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SABMiller announces USD1.75 billion bond issue and debt refinancing

28 June 2006

SABMiller plc, the world's second largest brewer by volume, announces 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 may not be distributed, directly or indirectly, in or into the United States, Canada, Australia or Japan.  It 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.

The notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from registration.  No public offer of the notes or the related guarantees is being made in the United States.

This announcement does not constitute or form part of any offer or any solicitation to purchase nor shall it, or the fact of its distribution, form the basis of, or be relied on in any purchase.  This announcement and any subsequent offer of securities may be restricted by law in certain jurisdictions and persons receiving this announcement or any subsequent offer should inform themselves about and observe any such restriction.  Failure to comply with such restrictions may violate securities laws of any such jurisdiction.

Any application for or purchase of securities issued by SABMiller should only be made on the basis of the information contained in the formal prospectus to be issued later today (the "Prospectus") and any supplement or amendment thereto.  The Prospectus will contain detailed information about the Issuer and its management, as well as financial statements and other financial data. 

Notes to editors

SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across five continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands.  Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2006, the group reported US$2,626 million adjusted pre-tax profit and a turnover of US$15,307 million.  SABMiller plc is listed on the London and Johannesburg stock exchanges.

This announcement is available on the company website:

High resolution images are available for the media to view and download free of charge from:

SABMiller plc  
Tel: +44 20 7659 0100
Sue Clark 
Director of Corporate Affairs 
Tel: +44 20 7659 0184
David Mallac  
Group Treasurer 
Tel: +44 1483 264000
Gary Leibowitz 
Senior Vice President, Investor Relations 
Tel: +44 20 7659 0174
Nigel Fairbrass 
Head of Media Relations 
Tel: +44 20 7659 0105

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the "Company") or any of its affiliates in any jurisdiction or an inducement to enter into investment activity.
Any information contained in this announcement on the price at which the Company's securities have been bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance.

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