Abi Cee Lbo Case Study

Topics: Debt, Finance, Minority interest Pages: 3 (364 words) Published: March 10, 2013
J.P. Morgan re-opens the European LBO market with a €690mm all-senior financing for CVC’s buyout of Anheuser-Busch InBev’s CEE assets Transaction background
Transaction background
As part of its ongoing divestment strategy, the world’s largest brewery group, Anheuser-Busch InBev (ABI), has decided to sell its operations in Central and Eastern Europe (CEE)
This includes ABI’s subsidiaries in Bosnia-Herzegovina,
Bulgaria, Croatia, Czech Republic, Hungary, Montenegro,
Romania, Serbia and Slovakia (11 breweries)
CVC has also agreed to brew and/or distribute Stella Artois, Beck’s, Löwenbräu, Hoegaarden, Spaten and Leffe in the
above countries under license from ABI
J.P. Morgan acted as debt advisor to CVC and is bookrunner
and MLA on the €690mm all-senior financing

Key transaction facts
Key transaction facts
Total enterprise value has been agreed at an initial $2,231mm

Deal highlights
Deal highlights
This transaction represents the first sizeable LBO financing in Europe since the collapse of Lehman in September 2008
It highlights the availability of domestic and international bank funding for thoughtfully structured and priced buyout transactions, even in an emerging market environment
It further proves that club deals with a large number of banks are manageable with the right level experience and market insight J.P. Morgan helped CVC to arrange and co-ordinate this diverse and multi-national bank group, benefiting from its uniquely

experienced, world-class leverage finance franchise

Financing structure
Financing structure

Size (€mm)





E+525 bps

This includes $165mm of minority interests

Revolving credit facility

This value could rise to up to $3.0bn due to earn-outs

Term Loan A (amortising)



E+475 bps

Total size of the senior debt financing package is €690mm, of which €615mm is drawn debt at close

Term Loan B1 (amortising)



E+525 bps...
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