Theme Parks to be sold by AB InBev for Up To $2.7 Bln
Anheuser-Busch

An announcement made Wednesday by Belgian brewer Anheuser-Busch InBev claims that private-equity firm Blackstone Group is to acquire AB InBev’s theme parks business for a sum of up to $2.7 billion.

If the deal is successful then, AB InBev will be able to pay down the $45 billion in debt it took on to purchase Anheuser Busch last year. The deal also comes as an indication that banks are ready to finance risky takeovers.

From quite some time now, there are speculations everywhere that AB InBev indented to sell the theme parks, which were owned by Anheuser; however it didn’t do so because the fall of credit markets made private equity buyers like Blackstone and even corporate buyers unable to raise financing for deals.

AN InBev is to receive in cash $2.3 billion along with the right to take part in the first $400 million of Blackstone's return on investment. Busch Entertainment Corporation, its subsidiary, operates 10 entertainment parks in the U. S., including three SeaWorld parks.

Sources familiar with the whole situation explained, “The financing backing Blackstone's acquisition totals $1.5 billion and includes a $950 million senior secured term loan, as well as a $450 million mezzanine facility.” The added that there is also a $100 million revolving credit facility and a $1 billion slug of equity.

The senior secured loan would reportedly be provided by Bank of America-Merrill Lynch, Barclays Capital, Deutsche Bank, Goldman Sachs Loan Partners and Mizuho Corporate Bank.

Goldman Sachs Mezzanine Partners and Blackstone unit GSO Capital Partners are to provide the mezzanine financing.

One source informed on the condition of anonymity, “AB InBev executives have planned to sell at least $7 billion in assets following the Anheuser deal, and the theme parks sale roughly achieves that target after AB InBev sold its South Korean division and a few other businesses. Busch Entertainment was seen as a logical candidate for sale because AB InBev wants to focus on selling beer.”

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