London, July 11 - Belgian brewer InBev has launched a $45 billion (22.7 billion pound) syndicated loan backing its acquisition of U.S. rival Anheuser-Busch to a wider syndication, allowing banks to distribute the risk further before the summer slowdown, banking sources said on Friday.
InBev is asking relationship banks for large commitments of $1.75 billion each, in return for high pricing and fees to counter tough and illiquid loan market conditions.
InBev is offering senior lenders an initial interest margin of around 175 basis points (bps) over LIBOR stepping down over time to around 100 bps, and is also offering fees of 100 bps, several banking sources said.
The large commitments of $1.75 billion are expected to be nearly halved in the first year as $19 billion or 42 percent of the loan is set to be refinanced by a mix of asset disposals and capital markets issues, a banker close to the deal said.
Of the $45 billion loan, $7 billion is a one-year bridge loan to be repaid by asset disposals and $12 billion is a one-year bridge loan to be repaid by capital markets issues, the source said.
The remaining $26 billion will consist of a $13 billion three-year loan and a $13 billion five-year loan.
The loan is being arranged by Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING, JP Morgan, Mizuho, Royal Bank of Scotland and Santander.