Molson Coors The First To Offer Investment-Grade Bonds Post-Brexit

Molson Coors Brewing Company TAP announced plans to sell euro-denominated bonds, which represents the first corporate-debt offering in Europe since the market collapse affected by the Brexit vote.

Referring to the company's statement, Bloomberg reported the proceeds from the offering, along with those from a dollar-bond deal and Canadian dollar private placement on Tuesday, will be utilized for funding its acquisition of SABMiller plc (ADR) SBMRY stake in Millercoors LLC.

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According to the unknown source, the maturity on those notes will be eight years, and it will offer a 145-basis-points-above-benchmark yield. As per the Bank of America Merrill Lynch index data, investors currently demand about 140 basis points over benchmark premium for holding euro debt of highly rated company.

Regina Borromeo, a London-based money manager at Brandywine Global Investment Management, indicated her positive outlook on this offering, stating that Molson is a well-known brand that has an understandable business model that was historically been resilient.

According to the statement from the company, the new offering would total the equivalent of $6.8 billion. The company sold $5.3 billion of bonds with maturities ranging from three years to 30 years and issued 1 billion Canadian dollars ($770 million) of notes in a private placement on Tuesday.