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Heineken Sticks to H2 Average Debt Cost Forecast

Source: Reuters
08/10/2008

Amsterdam, Oct 8 - Heineken NV, the world's third-largest brewer, is sticking to its forecast of an average interest rate of 5.8 percent on outstanding debt in the second half of the year, a spokeswoman said.

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Amsterdam-based Heineken had unveiled the target to investors on Sept. 9.

Earlier this year, it acquired parts of British rival Scottish & Newcastle and had 9.3 billion euros ($12.63 billion) of debt at the end of the first half, its website showed. It funded the S&N deal via debt.

Heineken's first priority is on repaying its debt, not refinancing it, spokeswoman Veronique Schyns said.

Asked about maturity and repayment details of Heineken's commercial paper and bonds, she said: "We are not under pressure to do anything at this moment in time." She said the company's debt repayment schedule will peak in 2013.

Heineken and Denmark's Carlsberg bought S&N for 7.8 billion pounds to carve up Britain's biggest brewer, whose products include Foster's, Kronenbourg and Newcastle Brown Ale. Heineken is known for its eponymous lager and Amstel.



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