InBev's $45 bln jumbo loan gathers support

By Zaida Espana

LONDON (Reuters) - InBev's INTB.BR $45 billion loan backing its acquisition of Budweiser brewer Anheuser-Busch (BUD.N) is edging towards completing the first phase of syndication after the deadline for commitments was extended into this week.

Around 20 of Inbev's closest relationship banks were invited to join senior syndication of the jumbo loan when the deal was launched on July 11th.

The banks were asked to make challenging commitments of $1.75 billion each in exchange for substantial fees of 100 bps, which equates to $17.5 million per bank.

Of the 20 banks, 13 to 16 banks are positively interested in participating in the deal, and some are currently seeking approval from their credit committees, one banker said.

The deal's pricing and fees are tempting, but the constraints on banks' balance sheets means that some of the banks invited are trying to make smaller commitments, banking sources said.

"Banks are invited at $1.75 billion but there could be exceptions," a banker said.

Smaller commitments would make life difficult for arranging banks, which need wide support at the top level and commitments of $1.75 billion to keep sell-down of the huge loan on track, and reduce their exposure to the credit.

However, the large commitments are taxing for cash-strapped banks. One bank has already declined and another three to four are negative, another banker said.