April 29, 2002
(To Prospectus dated July 23, 2001)
6.50% Debentures Due May 1, 2042
The Debentures will bear interest at the rate of 6.50% per year. Interest on the Debentures is payable on May 1 and November 1 of each year, beginning on November 1, 2002. The Debentures will mature on May 1, 2042. We may redeem some or all of the Debentures at any time, or from time to time, at a price equal to 100% of the principal amount of the Debentures plus a make-whole premium. The redemption price is discussed under the caption "Description of the Debentures--Optional Redemption" beginning on page S-3.
The Debentures will be unsecured and will rank equally with all of our other unsecured senior indebtedness from time to time outstanding.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this Prospectus Supplement or the accompanying Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
|Public Offering Price (1)||98.709%||$246,772,500|
|Underwriting Discount||0.875%||$ 2,187,500|
|Proceeds to Anheuser-Busch Companies, Inc.||97.834%||$244,585,000|
(1) Plus accrued interest from May 2, 2002, if settlement occurs after this date.
We do not currently intend to list the Debentures on any securities exchange. Currently, there is no public market for the Debentures.
The underwriters are offering the notes subject to various conditions. The underwriters expect to deliver the Debentures in book-entry form through the facilities of The Depository Trust Company on or about May 2, 2002.
Joint Book-Running Managers
|Banc of America Securities LLC||Salomon Smith Barney|
|Banc One Capital Markets, Inc.|
|Mizuho International plc||SunTrust Robinson Humphrey|
You should rely only on the information contained in or incorporated by reference in this Prospectus Supplement and the accompanying Prospectus. We have not authorized anyone to provide you with different information. We are not making an offer of these securities in any state where the offer is not permitted. You should not assume that the information provided by this Prospectus Supplement or the accompanying Prospectus is accurate as of any date other than the date on the front of this Prospectus Supplement or, with respect to information incorporated by reference, as of the date of that information.
TABLE OF CONTENTS
|Description of the Debentures||S-3|
|Table of Contents||2|
|Where You Can Find More Information||2|
|Information about Anheuser-Busch||3|
|Use of Proceeds||3|
|Description of the Debt Securities||4|
|Book-Entry Debt Securities||9|
|Plan of Distribution||11|
DESCRIPTION OF THE DEBENTURES
We will issue the Debentures under an Indenture dated as of July 1, 2001 (the Indenture) between us and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as Trustee. Information about the Indenture is in the accompanying Prospectus under Description of the Debt Securities.
The interest rate on the Debentures will be 6.50% per year, accruing from May 2, 2002. We will pay interest on May 1 and November 1, starting November 1, 2002. We will pay interest to the persons in whose names the Debentures are registered at the close of business on the April 15 or October 15 preceding the payment date.
We will issue the Debentures in bookentry form, as a single global Debenture registered in the name of the nominee of The Depository Trust Company, which will act as Depositary, or in the name of the Depositary. Beneficial interests in bookentry Debentures will be shown on, and transfers thereof will be made only through, records maintained by the Depositary and its participants. Except as described in the Prospectus under BookEntry Debt Securities, owners of beneficial interests in a global Debenture will not be entitled to receive physical delivery of certificates for the Debentures.
We may redeem the Debentures, in whole or in part, at our option at any time at a redemption price equal to the greater of (a) 100% of the principal amount of such Debentures and (b) as determined by a Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 25 basis points plus, in each case, accrued interest thereon to the date of redemption.
Adjusted Treasury Rate means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date; provided that, if the Quotation Agent shall determine that there is no such Comparable Treasury Issue, such rate per year shall be equal to the estimated semi-annual equivalent yield to maturity that a United States Treasury security having a maturity comparable to the remaining term of the Debentures would bear, if such security were available, such estimate to be made by the Quotation Agent on the basis of interpolation, extrapolation and other accepted financial practices, taking into account (a) the yields to maturity of United States Treasury securities of other maturities, (b) yields to maturity of other U.S. dollar-denominated debt securities having a maturity comparable to the remaining term of the Debentures to be redeemed and (c) applicable interest rate spreads between United States Treasury securities and such other debt securities, all as of 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.
Comparable Treasury Issue means the United States Treasury security selected by a Quotation Agent as having a maturity comparable to the remaining term of the Debentures to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Debentures.
Comparable Treasury Price means, with respect to any redemption date, (a) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (b) if the Quotation Agent obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such quotations.
Quotation Agent means the Reference Treasury Dealer appointed by us.
Reference Treasury Dealer means (a) Banc of America Securities LLC, Salomon Smith Barney Inc., Banc One Capital Markets, Inc., J.P. Morgan Securities Inc., UBS Warburg LLC and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a Primary Treasury Dealer), we shall substitute therefor another Primary Treasury Dealer; and (b) any other Primary Treasury Dealer we select.
Reference Treasury Dealer Quotations means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by us, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.
Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of the Debentures to be redeemed. Unless we default in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the Debentures or portions thereof called for redemption.
The Debentures will not be subject to any sinking fund.
Conditional Right to Shorten Maturity upon Tax Event
We intend to deduct interest paid on the Debentures for U.S. federal income tax purposes. However, there have been proposed tax law changes over the past several years that, among other things, would have prohibited an issuer from deducting interest payments on debt instruments with a maturity of more than 40 years. While none of these proposals has become law, there can be no assurance that similar legislation affecting our ability to deduct interest paid on the Debentures will not be enacted in the future or that any such legislation would not have a retroactive effective date. As a result, there can be no assurance that a tax event, as defined below, will not occur.
If such a tax event occurs, we will have the right to shorten the maturity of the Debentures by the minimum period required, in the opinion of Bryan Cave LLP or other nationally recognized tax counsel, to allow us to deduct interest paid on the Debentures for U.S. federal income tax purposes. If such tax counsel advises us that it is unable to render a definite opinion as to the minimum period required, we will have the right to shorten the maturity of the Debentures by such minimum period as we shall determine to be advisable based on an opinion of such tax counsel regarding the applicable legal standards. We can give no assurance that we will not exercise our right to shorten the maturity of the Debentures if a tax event occurs. Likewise, we can give no assurance as to the period by which such maturity would be shortened.
If we elect to shorten the maturity of the Debentures upon the occurrence of a tax event, we will mail a notice of the shortened maturity to each registered holder of record of the Debentures stating the new maturity date of the Debentures. We will mail such notice by first-class mail not more than 60 days after the occurrence of such tax event. Such notice will be effective immediately upon mailing.
We believe that the Debentures should constitute indebtedness for U.S. federal income tax purposes under current law and, in that case, the shortening of the maturity of the Debentures would not be a taxable event to you for such purposes. You should be aware, however, that the shortening of the maturity of the Debentures will be a taxable event to you if, prior to such shortening, the Debentures are treated as equity for U.S. federal income tax purposes.
Tax event means the receipt by us of an opinion of tax counsel to the effect that, as a result of the occurrence of any of the following events on or after April 29, 2002, there is more than an insubstantial increase in the risk that interest paid by us on the Debentures is not, or will not be, deductible, in whole or in part, by us for U.S. federal income tax purposes:
Same-Day Settlement and Payment
The Debentures will trade in the Depositarys same-day funds settlement system until maturity or until we issue the Debentures in definitive form. The Depositary will therefore require secondary market trading activity in the Debentures to settle in immediately available funds.
The Debentures will be governed by and construed in accordance with the laws of the State of New York.
We may elect to issue additional Debentures under the Indenture which would be considered part of the same issue as the Debentures. If we do so, those securities would have the same interest rate as the Debentures, the same maturity date and the same payment terms as the Debentures.
Subject to the terms and conditions stated in the underwriting agreement dated the date of this Prospectus Supplement, the underwriters named below, for whom Banc of America Securities LLC and Salomon Smith Barney Inc. are acting as joint book-running managers, have severally agreed to purchase, and we have agreed to sell to such underwriters, the principal amount of Debentures set forth opposite the names of such underwriters.
|Banc of America Securities LLC||$80,000,000|
|Salomon Smith Barney Inc.||80,000,000|
|Banc One Capital Markets, Inc.||22,500,000|
|J.P. Morgan Securities Inc.||22,500,000|
|UBS Warburg LLC||22,500,000|
|Mizuho International plc||11,250,000|
|SunTrust Capital Markets, Inc.||11,250,000
The underwriting agreement provides that the obligations of the several underwriters to purchase the Debentures included in this offering are subject to approval of certain legal matters by counsel and to certain other conditions. The underwriters are obligated to purchase all the Debentures if they purchase any of the Debentures.
The underwriters propose to offer some of the Debentures directly to the public at the public offering price set forth on the cover page of this Prospectus Supplement and some of the Debentures to certain dealers at the public offering price less a concession not in excess of 0.50% of the principal amount of the Debentures. The underwriters may allow, and such dealers may reallow, a concession not in excess of 0.25% of the principal amount of the Debentures on sales to certain other dealers. After the initial offering of the Debentures to the public, the public offering price and such concessions may be changed.
The Debentures are a new issue of securities with no established trading market. We do not currently intend to apply for the listing of the Debentures on any securities exchange or for quotation of the Debentures in any dealer quotation system. We have been advised by the underwriters that one or more of them intends to make a market in the Debentures, but the underwriters are not obligated to do so and may discontinue any market-making activities at any time without notice. We can give no assurance as to the liquidity of the trading market for the Debentures.
We estimate that we will spend approximately $150,000 for printing, rating agency fees, registration fees, Trustees fees, legal fees and other expenses of the offering.
In connection with the offering, Banc of America Securities LLC and Salomon Smith Barney Inc., on behalf of the underwriters, may purchase and sell Debentures in the open market. These transactions may include over-allotment, syndicate covering transactions and stabilizing transactions. Over-allotment involves syndicate sales of Debentures in excess of the principal amount of Debentures to be purchased by the underwriters in the offering, which creates a syndicate short position. Syndicate covering transactions involve purchases of the Debentures in the open market after the distribution has been completed in order to cover syndicate short positions. Stabilizing transactions consist of certain bids or purchases of Debentures made for the purpose of preventing or retarding a decline in the market price of the Debentures while the offering is in progress.
The underwriters also may impose a penalty bid. Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when Banc of America Securities LLC or Salomon Smith Barney Inc., in covering syndicate short positions or making stabilizing purchases, repurchase Debentures originally sold by that syndicate member.
Any of these activities may cause the price of the Debentures to be higher than the price that otherwise would exist in the open market in the absence of such transactions. These transactions may be effected in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.
We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended.
We entered into an interest rate derivative transaction with an affiliate of Banc of America Securities LLC relating to a government security which served as the reference interest rate for the Debentures.
The underwriters have agreed to make a payment to us in lieu of expense reimbursement.
In the ordinary course of their respective businesses, certain of the underwriters and the Trustee and some of their respective affiliates have performed and may in the future perform various financial advisory, commercial banking and investment banking services for us from time to time, for which they have received or will receive customary fees. Affiliates of some of the underwriters, including Banc of America Securities LLC, and the Trustee are lenders under our bank credit agreements.
This Prospectus describes Debt Securities which Anheuser-Busch Companies, Inc. may issue and sell at various times. More detailed information is under Description of Securities.
We may sell Debt Securities directly to investors or through underwriters, dealers or agents. More information about the way we will distribute the Debt Securities is under the heading Plan of Distribution. Information about the underwriters or agents who will participate in any particular sale of Debt Securities will be in the Prospectus Supplement relating to that series of Debt Securities.
Our principal office is at One Busch Place, St. Louis, Missouri 63118, and our telephone number is (314) 577-2000.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or passed upon the adequacy or accuracy of this Prospectus. Any representation to the contrary is a criminal offense.
The date of this Prospectus is July 23, 2001.
We have not authorized anyone to give any information or to make any representations concerning the offering of the Debt Securities except those which are in this Prospectus or in the Prospectus Supplement which is delivered with this Prospectus, or which is referred to under Where You Can Find More Information. If anyone gives any other information or representation, you should not rely on it. This Prospectus is not an offer to sell or a solicitation of an offer to buy any securities other than the Debt Securities which are referred to in the Prospectus Supplement. This Prospectus is not an offer to sell or a solicitation of an offer to buy Debt Securities in any circumstances in which the offer or solicitation is unlawful. You should not interpret the delivery of this Prospectus, or any sale of Debt Securities, as an indication that there has been no change in our affairs since the date of this Prospectus. You should also be aware that information in this Prospectus may change after this date.
TABLE OF CONTENTS
|Table of Contents||2||Modification or Amendment of the Indenture||7|
|Where You Can Find More Information||3||Defeasance||8|
|Information about Anheuser-Busch||3||Events of Default, Notice and Waiver||8|
|Use of Proceeds||3||Regarding the Trustee||9|
|Description of the Debt Securities||4||Book-Entry Debt Securities||9|
|General||4||Plan of Distribution||11|
|Payments On Debt Securities; Transfers||5||Legal Opinion||11|
|Form and Denominations||5||Experts||11|
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any of these documents at the SECs public reference room in Washington, D.C. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Our SEC filings are also available to the public at the SECs Internet website at http://www.sec.gov. The SEC allows us to incorporate by reference the information we file with them, which means that we can disclose important information to you by referring you to those documents.
The information incorporated by reference is considered to be part of this Prospectus, and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed below and any future filings made with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 until we sell all of the Debt Securities.
You may receive a copy of any of these filings, at no cost, by writing or telephoning the Corporate Secretary, Anheuser-Busch Companies, Inc., One Busch Place, St. Louis, Missouri 63118, telephone 314-577-2000.
We have filed with the SEC a Registration Statement to register the Debt Securities under the Securities Act of 1933. This Prospectus omits certain information contained in the Registration Statement, as permitted by SEC rules. You may obtain copies of the Registration Statement, including exhibits, as noted in the first paragraph above.
INFORMATION ABOUT ANHEUSER-BUSCH
Anheuser-Busch Companies, Inc. (Anheuser-Busch) is a Delaware corporation that was organized in 1979 as the holding company parent of Anheuser-Busch, Incorporated (ABI), a Missouri corporation whose origins date back to 1875. In addition to ABI, which is the worlds largest brewer of beer, we are also the parent corporation to a number of subsidiaries that conduct various other business operations, including those related to the production and acquisition of brewing raw materials, the manufacture and recycling of aluminum beverage containers and the operation of theme parks.
These are our most important subsidiaries:
USE OF PROCEEDS
Unless we indicate otherwise in the Prospectus Supplement which accompanies this Prospectus, we intend to add the net proceeds from the sale of the Debt Securities to our general funds. We expect to use the proceeds for general corporate purposes, including working capital, capital expenditures and repayment of borrowings. Before we use the proceeds for these purposes, we may invest them in short-term investments.
DESCRIPTION OF THE DEBT SECURITIES
This section describes some of the general terms of the Debt Securities. The Prospectus Supplement describes the particular terms of the Debt Securities we are offering. The Prospectus Supplement also indicates the extent, if any, to which these general provisions may not apply to the Debt Securities being offered. If you would like more information on these provisions, you may review the Indenture which is filed as an exhibit to the Registration Statement which is filed with the SEC. See Where You Can Find More Information.
We will issue the Debt Securities either under the Indenture dated as of July 1, 2001 between us and The Chase Manhattan Bank, as trustee, or under a separate, substantially identical indenture to be entered into between us and a new trustee. We are summarizing certain important provisions of the Debt Securities and the Indenture. This is not a complete description of the important terms. You should refer to the specific terms of the Indenture for a complete statement of the terms of the Indenture and the Debt Securities. When we use capitalized terms which we do not define here, those terms have the meanings given in the Indenture. When we use references to Sections, we mean Sections in the Indenture.
The Debt Securities will be senior unsecured obligations of Anheuser-Busch.
The Indenture does not limit the amount of Debt Securities that we may issue under the Indenture, nor does it limit other debt that we may issue. We may issue the Debt Securities at various times in different series and issues, each of which may have different terms. The word issue means, for any series of Debt Securities, that the securities have the same original issue date or date from which interest starts to accrue, the same maturity date and the same interest rate and other payment terms or that the Company has otherwise designated securities as part of the same issue. Unless we indicate otherwise in the Prospectus Supplement for any series or issue, we may treat a subsequent offering of Debt Securities as a part of the same issue as that series or issue.
The Prospectus Supplement relating to the particular series of Debt Securities we are offering includes the following information concerning those Debt Securities:
Payments on Debt Securities; Transfers
We will make payments on the Debt Securities to the persons in whose names the securities are registered at the close of business on the record date for the interest payments. As explained under Book-Entry Securities below, The Depository Trust Company or its nominee will be the initial registered holder unless the Prospectus Supplement provides otherwise.
Unless we indicate otherwise in the Prospectus Supplement, we will make payments on the Debt Securities at the trustees office. For The Chase Manhattan Bank, the office is now its Corporate Trust Office, 450 West 33rd Street, New York, New York 10001. In the case of any other trustee, we will specify the office and address in the Prospectus Supplement or in an attachment thereto. Transfers of Debt Securities can be made at the same offices. (Sections 202, 301, 306 and 1002)
Form and Denominations
Unless we otherwise indicate in the Prospectus Supplement:
Creation of Secured Indebtedness
Under the Indenture, we and our Restricted Subsidiaries (defined below) may not create, assume, guarantee or permit to exist any indebtedness for borrowed money which is secured by a pledge of, or a mortgage or lien on, any of our Principal Plants (defined below) or on any of our Restricted Subsidiaries capital stock, unless we also provide equal and ratable security for the Debt Securities. A Restricted Subsidiary is a Subsidiary which owns or operates a Principal Plant, unless it is incorporated or has its principal place of business outside the United States, and any other subsidiary which we elect to treat as a Restricted Subsidiary. A Principal Plant is a brewery, or a manufacturing, processing or packaging plant located in the United States, but does not include a plant which we determine is not of material importance to the total business conducted by us and our Subsidiaries, any plant which we determine is used primarily for transportation, marketing or warehousing or at our option any plant that does not constitute part of the brewing operations of the Company and has a net book value of not more than $100,000,000.
This restriction does not apply to:
There is an additional exception as described below under 10% Basket Amount.
If we become obligated to provide security for the Debt Securities as described above, we would also be required to provide comparable security for most of our other outstanding indebtedness.
Under the Indenture, neither we nor any Restricted Subsidiary may enter into any sale and leaseback transaction involving a Principal Plant, except a sale by a Restricted Subsidiary to us or another Restricted Subsidiary or a lease not exceeding three years, by the end of which we intend to discontinue use of the property, and except for any transaction with a local or state authority that provides financial or tax benefits, unless:
There is an additional exception as described below under 10% Basket Amount.
Limitation on Funded Debt of Restricted Subsidiaries
We may not permit any Restricted Subsidiary to create, assume or permit to exist any Funded Debt other than:
There is an additional exception as described below under 10% Basket Amount.
Funded Debt means all of our indebtedness for money borrowed, including purchase money indebtedness, having a maturity of more than twelve months from the date of determination or having a maturity of less than twelve months but by its terms being renewable or extendible beyond twelve months at our option, subject only to conditions which we are then capable of fulfilling, and direct guarantees of similar indebtedness for money borrowed of others and any other indebtedness we classify as long-term indebtedness in our financial statements, except that Funded Debt does not include:
10% Basket Amount
In addition to the exceptions described above under Creation of Secured Indebtedness, Sale-Leaseback Financings and Limitation on Funded Debt of Restricted Subsidiaries, the Indenture allows additional secured indebtedness, additional sale-leaseback financings and additional Funded Debt of Restricted Subsidiaries as long as the total of the additional indebtedness and Funded Debt and the fair market value of the property transferred in the additional sale-leaseback financings does not exceed 10% of our Net Tangible Assets. Net Tangible Assets means our total assets including those of our subsidiaries after deducting current liabilities (except for those which are Funded Debt) and goodwill, trade names, trademarks, patents, unamortized debt discount and expense, organization and developmental expenses and other like segregated intangibles. Deferred income taxes, deferred investment tax credit or other similar items will not be considered as a liability or as a deduction from or adjustment to total assets. (Sections 1006(d), 1007(c) and 1008(b))
We may consolidate with or merge into any other corporation or transfer or lease our properties and assets substantially as an entirety as long as we meet certain conditions, including the assumption of the securities by any successor corporation. (Section 801) The Company is not restricted from transferring its aluminum can manufacturing business and related operations.
Modification or Amendment of the Indenture
We may modify and amend the Indenture if the holders of a majority in principal amount of the outstanding Debt Securities affected by the modification or amendment consent, except that no supplemental indenture may reduce the principal amount of or interest or premium payable on any Debt Security, change the maturity date or dates of principal payments, the interest payment dates or other terms of payment, or reduce the percentage of holders necessary to approve a modification or amendment of the Indenture, without the consent of each holder of outstanding Debt Securities affected by the supplemental indenture. (Section 902)
We and the trustee may amend the Indenture without the holders consent for certain specified purposes, including any change which, in our counsels opinion, does not materially adversely affect the holders interests. (Section 901)
The Indenture includes provisions allowing defeasance of the Debt Securities of any series. In order to defease Debt Securities, we would deposit with the Trustee or another trustee money or U.S. Government Obligations sufficient to make all payments on those Debt Securities. If we make a defeasance deposit with respect to your Debt Securities, we may elect either:
To establish the trust, we must deliver to the Trustee an opinion of our counsel that the holders of the Debt Securities will not recognize gain or loss for Federal income tax purposes as a result of the defeasance and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would have been the case if the defeasance had not occurred. (Article Thirteen)
Events of Default, Notice and Waiver
An Event of Default in respect of any issue of Debt Securities means:
If an Event of Default occurs and is continuing in respect of one or more issues, either the Trustee or the holders of 25% in principal amount of the outstanding Debt Securities of those issues may declare the principal of and accrued interest, if any, on all securities of those issues to be due and payable. If other specified Events of Default occur and are continuing, either the Trustee or the holders of 25% in principal amount of the outstanding Debt Securities of all issues may declare the principal of and accrued interest, if any, on all the outstanding Debt Securities to be due and payable. (Section 502)
Within 90 days after a default in respect of any issue of Debt Securities, the Trustee must give to the holders of the Debt Securities of that series notice of all uncured and unwaived defaults by us known to it. However, except in the case of default in payment, the Trustee may withhold the notice if it in good faith determines that it is in the interest of the holders. The term default means, for this purpose, the occurrence of any event that is or, upon notice or lapse of time would be, an Event of Default. (Section 602)
Before the Trustee is required to exercise rights under the Indenture at the request of holders, it is entitled to be indemnified by the holders, subject to its duty, during an Event of Default, to act with the required standard of care. (Sections 601 through 612)
A holder of a Debt Security will not be entitled to pursue any remedy under the Indenture except under the following circumstances:
The holders of a majority in principal amount of the outstanding securities of any series (voting as a single class) may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred upon the Trustee in respect of the securities of that series. (Section 512)
The holders of a majority in principal amount of the outstanding securities of all series affected by a default (voting as a single class) may, on behalf of the holders of all that securities, waive the default except a default in payment of the principal of or premium, if any, or interest on any security. (Section 513) The holders of a majority in principal amount of outstanding securities of all series entitled to the benefits thereof (voting as a single class) may waive compliance with certain covenants under the Indenture. (Section 1010)
We will furnish to the trustee, annually, a statement as to the fulfillment by us of our obligations under the Indenture. (Section 1004)
Regarding the Trustee
The Chase Manhattan Bank is the Trustee under the Indenture. The Indenture is dated as of July 1, 2001. The Chase Manhattan Bank also acts as trustee (or successor trustee) under other Indentures with us under which an aggregate of approximately $4.2 billion in principal amount of indebtedness is issued and outstanding. The Chase Manhattan Bank also is a party to our credit agreement, under which it has committed to lend us up to $425 million, and provides other commercial and investment banking services to us. An affiliate of The Chase Manhattan Bank has engaged, and may in the future engage, in investment banking and/or general financing and banking transactions with us.
We can remove the Trustee of any series as long as there is no Event of Default and no event that, upon notice or lapse of time or both, would become an Event of Default. The holders of a majority of the principal amount of the series may also remove the Trustee at any time. The Indenture prescribes procedures by which the Trustee will be replaced, in the event of its removal. (Section 610)
BOOK-ENTRY DEBT SECURITIES
The Prospectus Supplement will indicate whether we are issuing the related Debt Securities as book-entry securities. Book-entry securities of a series will be issued in the form of one or more global notes that will be deposited with The Depository Trust Company, New York, New York, and will evidence all of the Debt Securities of that series. This means that we will not issue certificates to each holder. We will issue one or more global securities to DTC, which will keep a computerized record of its participants (for example, your broker) whose clients have purchased the Debt Securities. The participant will then keep a record of its clients who own the Debt Securities. Unless it is exchanged in whole or in part for a security evidenced by individual certificates, a global security may not be transferred, except that DTC, its nominees and their successors may transfer a global security as a whole to one another. Beneficial interests in global securities will be shown on, and transfers of beneficial interests in global notes will be made only through, records maintained by DTC and its participants. Each person owning a beneficial interest in a global security must rely on the procedures of DTC and, if the person is not a participant, on the procedures of the participant through which the person owns its interest to exercise any rights of a holder of Debt Securities under the Indenture.
The laws of some jurisdictions require that certain purchasers of securities such as Debt Securities take physical delivery of the securities in definitive form. These limits and laws may impair your ability to acquire or transfer beneficial interests in the global security.
We will make payments on each series of book-entry Debt Securities to DTC or its nominee, as the sole registered owner and holder of the global security. Neither Anheuser-Busch, the Trustee nor any of their agents will be responsible or liable for any aspect of DTCs records relating to or payments made on account of beneficial ownership interests in a global security or for maintaining, supervising or reviewing any of DTCs records relating to the beneficial ownership interests.
DTC has advised us that, when it receives any payment on a global security, it will immediately, on its book-entry registration and transfer system, credit the accounts of participants with payments in amounts proportionate to their beneficial interests in the global security as shown on DTCs records. Payments by participants to you, as an owner of a beneficial interest in the global security, will be governed by standing instructions and customary practices (as is now the case with securities held for customer accounts registered in street name) and will be the sole responsibility of the participants.
A global security representing a series will be exchanged for certificated Debt Securities of that series if (a) DTC notifies us that it is unwilling or unable to continue as Depositary or if DTC ceases to be a clearing agency registered under the Securities Exchange Act of 1934 and we do not appoint a successor within 90 days or (b) we decide that the global security shall be exchangeable. If that occurs, we will issue Debt Securities of that series in certificated form in exchange for the global security. An owner of a beneficial interest in the global security then will be entitled to physical delivery of a certificate for Debt Securities of the series equal in principal amount to that beneficial interest and to have those Debt Securities registered in its name. We would issue the certificates for the Debt Securities in denominations of $1,000 or any larger amount that is an integral multiple thereof, and we would issue them in registered form only, without coupons.
DTC has informed us that it is a limited-purpose trust company organized under the New York Banking Law, a banking organization within the meaning of the New York Banking Law, a member of the Federal Reserve System, a clearing corporation within the meaning of the New York Uniform Commercial Code, and a clearing agency registered under the Securities Exchange Act of 1934. DTC was created to hold the securities of its participants and to facilitate the clearance and settlement of securities transactions among its participants through electronic book-entry changes in accounts of the participants, thereby eliminating the need for physical movement of securities certificates. DTCs participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations, some of whom (and/or their representatives) own DTC. Access to DTCs book-entry system is also available to others, such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a participant, either directly or indirectly. The rules applicable to DTC and its participants are on file with the SEC. No fees or costs of DTC will be charged to you.
PLAN OF DISTRIBUTION
We may sell Debt Securities to or through one or more underwriters or dealers, and also may sell Debt Securities directly to other purchasers or through agents. These firms may also act as our agents in the sale of Debt Securities. Only underwriters named in the Prospectus Supplement will be considered as underwriters of the Debt Securities offered by the Prospectus Supplement.
We may distribute Debt Securities at different times in one or more transactions. We may sell Debt Securities at fixed prices, which may change, at market prices prevailing at the time of sale, at prices related to the prevailing market prices or at negotiated prices.
In connection with the sale of Debt Securities, underwriters may receive compensation from us or from purchasers of Debt Securities in the form of discounts, concessions or commissions. Underwriters, dealers and agents that participate in the distribution of Debt Securities may be deemed to be underwriters. Discounts or commissions they receive and any profit on their resale of Debt Securities may be considered underwriting discounts and commissions under the Securities Act of 1933. We will identify any underwriter or agent, and we will describe any compensation, in the Prospectus Supplement.
We may agree to indemnify underwriters, dealers and agents who participate in the distribution of Debt Securities against certain liabilities, including liabilities under the Securities Act of 1933.
We may authorize dealers or other persons who act as our agents to solicit offers by certain institutions to purchase Debt Securities from us under contracts which provide for payment and delivery on a future date. We may enter into these contracts with commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions and others. If we enter into these agreements concerning any series of Debt Securities, we will indicate that in the Prospectus Supplement.
In connection with an offering of Debt Securities, underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the Debt Securities. Specifically, underwriters may over-allot in connection with the offering, creating a syndicate short position in the Debt Securities for their own account. In addition, underwriters may bid for, and purchase, Debt Securities in the open market to cover short positions or to stabilize the price of the Debt Securities. Finally, underwriters may reclaim selling concessions allowed for distributing the Debt Securities in the offering if the underwriters repurchase previously distributed Debt Securities in transactions to cover short positions, in stabilization transactions or otherwise. Any of these activities may stabilize or maintain the market price of the Debt Securities above independent market levels. Underwriters are not required to engage in any of these activities and may end any of these activities at any time.
Unless otherwise indicated in the Prospectus Supplement, each series of Debt Securities offered will be a new issue of securities and will have no established trading market. The Debt Securities may or may not be listed on a national securities exchange. No assurance can be given as to the liquidity of or the existence of trading markets for any Debt Securities.
Bryan Cave LLP, St. Louis, Missouri, as our counsel, has issued an opinion as to the legality of the Debt Securities.
The financial statements incorporated in this Prospectus by reference to the Annual Report on Form 10-K for the year ended December 31, 2000 have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting.
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6.50% Debentures Due May 1, 2042
April 29, 2002
Bank of America Securities LLC
Salomon Smith Barney
Banc One Capital Markets, Inc.
Mizuho International plc
SunTrust Robinson Humphrey