AB InBev deal could spur Triple B refinancing wave

摘要

anheuser-busch inbev's US$15.5bn bond offering is likely to be the first of a string of refinancings from Triple B rated companies looking to tackle near-term debt maturities after gorging on debt to fund acquisitions. Conscious that funding costs could rise as the credit cycle peaks, such issuers are being encouraged to carry out liability management operations sooner rather than later to push out maturities and even to reduce leverage. InBev's new offering, along with cash on its balance sheet, will finance a tender for US$16.5bn of bonds maturing during 2021-2026, while the new bonds have maturities as long as 40 years.