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Heineken Sells $3.25 Billion of Bonds to Buy Brewer Asia Pacific

Oct. 2 (Bloomberg) -- Heineken NV, the world’s third-biggest beer-maker, sold $3.25 billion of debt denominated in U.S. dollars to fund the acquisition of Asia Pacific Breweries Ltd.

The sale included $500 million of 0.8 percent, three-year notes to yield 55 basis points more than Treasuries with similar maturities, $1.25 billion of 1.4 percent, five-year securities at a spread of 85 basis points, $1 billion of 2.75 percent, 10.5-year bonds at 115 and $500 million of 4 percent, 30-year debt at 130, according to data compiled by Bloomberg.

Heineken got approval to take control of Asia Pacific Breweries on Sept. 28 in a buyout of joint-venture partner Fraser & Neave Ltd. for S$5.6 billion ($4.6 billion).

The brewer last sold dollar-denominated debt in March, issuing $750 million of 3.4 percent notes due in April 2022. Those securities were quoted at 104.1 cents on the dollar to yield 2.9 percent yesterday, according to prices compiled by Bloomberg.

The new bonds may be rated Baa1 by Moody’s Investors Service, the third-lowest level of investment grade, Bloomberg data show. Barclays Plc, Citigroup Inc., Credit Suisse Group AG, and JPMorgan Chase & Co. managed the sale.

To contact the reporter on this story: Matt Robinson in New York at Mrobinson55@bloomberg.net.

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net.

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