Heineken reduces net debt through Globe debt buy-back

Amsterdam, 28 May 2009 - Heineken N.V. today announced that it has acquired a further 55.6% of Class A1 Notes representing a face value of £111.2 million issued by Globe Pub Issuer plc ('Globe'). Heineken has also acquired 31.6% of Class B1 Notes issued by Globe, representing a face value of £18.0 million, and a 21.7% participation in the syndicated bank debt (being £50 million out of an aggregate of £230 million).

In addition, Heineken has now assumed the economic interest of the counterparty of Globe Pub Management Limited in a swap transaction. The swap was entered in 2006, when the floating interest rate in relation to the syndicated bank debt was swapped for a fixed interest rate.

 

These additional purchases follow Heineken's initial acquisition of 30.1% of Class A1 Notes issued by Globe, representing a face value of £60.2 million, on 17 April 2009. Heineken therefore now owns a total of 85.7% of the Class A1 Notes.

 

Heineken has purchased the Notes and syndicated bank debt at a substantial discount to face value. As Heineken has consolidated the Globe group for accounting purposes as per 28 April 2008, the net debt of Globe is included in the consolidated balance sheet of Heineken and therefore, the acquisition of debt of Globe at a discount, results in a reduction of Heineken's total net debt position and a realisation of a net book gain. The book gain will be included as an exceptional item in Heineken's results for 2009.

 

The Globe group owns approximately 425 pubs across the United Kingdom. Scottish & Newcastle companies, acquired by Heineken N.V. in April 2008, have a 30-year beer supply contract with the Globe group in addition to its role as Managing Agent for the pub estate.

 

 

Heineken N.V. is one of the world's great brewers and is committed to growth and remaining independent. The brand that bears the founder's family name - Heineken - is available in almost every country on the globe and is the world's most valuable international premium beer brand.  The company's aim is to be a leading brewer in each of the markets in which we operate and to have the world's most prominent brand portfolio. In 2008, the Company operated 125 breweries in more than 70 countries and sold 162 million hectolitres of beer. Heineken is Europe's largest brewer and the world's third largest by volume. Heineken is committed to the responsible marketing and consumption of its more than 200 international premium, regional, local and specialty beers and ciders.  These include Amstel, Birra Moretti, Cruzcampo, Foster's, Maes, Murphy's, Newcastle Brown Ale, Ochota, Primus, Sagres, Star, Strongbow, Tiger and Zywiec. In 2008, revenue totalled EUR 14.3 billion and Net Profit before exceptional items and amortisation was EUR 1.0 billion. In 2008, the average number of people employed was 56,208. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA:NA and HEIO:NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. Additional information is available on Heineken's home page: http://www.heinekeninternational.com.