25. Loans and borrowings
EMTN Programme
Financial Statements
Notes to the consolidated financial statements
In February 2009, the Company placed 6-year Sterling Notes for a principal amount of GBP400 million with
a coupon of 7.25 per cent. In March 2009, the Company placed 5-year Euro Notes for a principal amount of
EUR1 billion with a coupon of 7.125 per cent. In October 2009 Heineken has placed 7-year Euro Notes for a
principal amount of EUR400 million with a coupon of 4.625 per cent.
These Notes were issued under the Euro Medium Term Note Programme ('EMTN') and are listed on the
Luxembourg Stock Exchange. The proceeds of these notes have been used to partially refinance bank credit
facilities related to the Scottish Newcastle acquisition and for general corporate purposes.
Globe
On 17 April 2009, the Company acquired 30.1 per cent of Class A1 Notes issued by Globe Pub Issuer pic ('Globe'),
representing a face value of GBP60.2 million. In May 2009 the Company acquired a further 55.6 per cent of Class
A1 Notes representing a face value of GBP 111.2 million. As at 29 October 2009 the Company owned 92.8 per cent
of Class A1 Notes representing a face value of GBP 175 million. In addition, the Company acquired 31.6 per cent
of Class B1 Notes issued by Globe representing a face value of GBP 18 million, a 23.9 per cent participation in the
syndicated bank debt of Globe Pub Management Limited ('GPM') being GBP55 million out of an aggregate of
GBP230 million, and assumed the economic interest of the counterparty of GPM in an interest rate swap
transaction. The swap was entered into in 2006 when the floating interest rate in relation to the syndicated bank
debt was swapped for a fixed interest rate.
The Company purchased the Notes and syndicated bank debt at a substantial discount to face value. As Globe
is part of the Group as at 28 April 2008, the net debt of Globe is included in the consolidated statement
of financial position of the Group and therefore, the acquisition of debt of Globe at a discount, results in a
reduction of the Group's total net debt position and a realisation of a net book gain as explained in note 12. On
29 October 2009, Heineken agreed to supply beer and management services to EBP Pub Company Limited (EBP),
a company controlled by FEOH Investments Limited (FEOH), which acquired the tenanted pub estate (the Estate)
from Globe Tenanted Pub Company (GTP). The proceeds of the sale to EBP have been used principally to repay
the Class A1 Notes which partially funded GTP. Also on this date, Heineken entered into a conditional sale
agreement with FEOH pursuant to which it is anticipated that Heineken will acquire full ownership of EBP later
in 2010.
On 23 December 2009, Heineken acquired the remaining syndicated bank debt of GPM at a discount to the
GBP 175 million (EUR 195 million) face value. As a result of the acquisition, Heineken acquired all of the
syndicated bank debt of GPM with a face value of GBP230 million (EUR256 million) and no longer has any
outstanding debt relating to Globe on its balance sheet.
122
Annual Report 2009 - Heineken N.V.
