SABMiller to Swap Bavaria COP Bonds

SABMiller is expected to swap out COP1.9trn ($1.0bn) in existing Bavaria bonds next week through a tender offer, says a banker on the deal. The global brewer will not be issuing new debt, the banker says. “SABMiller will issue new notes in its own name to replace Bavaria’s,” he adds. The Bavaria notes are pegged to the IPC. Bavaria’s outstanding bonds include its IPC + 8.18% of 2012s, IPC + 7.5% of 2013s, IPC + 7.3% of 2014s, and IPC + 6.52% of 2015s. All are rated AAA. Correval is managing the swap.