J.P. Morgan and Deutsche Bank are scheduled to launch tomorrow syndication of the $2.005 billion loan backing Adolph Coors' acquisition of the Carling business of Bass Brewers from Belgium-based Interbrew. The Denver-based bank meeting will include a tour of the Coors brewery as a warm up, sources said.
The loan comprises a $300 million, multi-currency, five-year revolver; an $880 million, five-year amortizing term loan; and an up to $825 million, nine-month bridge facility that will be replaced with a senior notes offering. The spread is tied to a ratings-based grid. Moody's Investors Service downgraded the company from Baa1 to Baa2, potentially pushing the spread from 1/8% to1% over LIBOR. Standard & Poor's had not made a decision by press time. Pro rata commitments are 30 basis points for $75 million and 20 basis points for $50 million.
Deutsche Bank won a lead spot on the acquisition financing partly because of the addition of David Jacobs, a managing director and head of global consumer investment banking, who had worked with the company when he was at Morgan Stanley (LMW, 1/7). Tim Wolf, senior v.p. and cfo of Coors, also accredits Deutsche Bank and J.P. Morgan's global capabilities. Some European banks will be tapped to be a part of the syndicate, said the source, since Carling is essentially a global brand.