E-Malt.com News article: Denmark: Carlsberg Breweries ratings confirmed on 30.5 bln crowns rights issue

Moody's Investors Service confirmed the 'Baa3' long-term issuer rating of Carlsberg Breweries (CB), following the announcement of a fully underwritten 30.5 billion crowns rights issue, Thomson Financial News reported May 16.

Proceeds will be applied to refinance the equity bridge facility of 28.7 billion crowns and partially repay the term loan A facility that the company put in place to purchase certain assets of Scottish & Newcastle (S&N).

'The confirmation of the rating reflects the fact that, with the announced ... rights issue, CB took a balanced approach to debt and equity funding of this sizeable transaction, and we expect credit metrics to improve back to levels in line with Moody's targets within two years,' the agency said.

The rights issue is fully underwritten by certain banks which have agreed, subject to certain conditions, to subscribe for any offered shares in respect of which pre-emptive rights have not been exercised by the end of the subscription period.


20 May, 2008