Corona Owner Constellation Brands Prices Offering Of Senior Notes
Constellation Brands, which owns the Corona and Modelo beer brands, among others, has announced that it has priced a public offering of $2.15 billion of Senior Notes, as it seeks to increase its investment in cannabis producer Canopy Growth.
This offering is comprised of four tranches: of $650 million worth of Senior Floating Rate Notes due 2021; $500 million worth of of 4.400% Senior Notes due 2025; $500 million of 4.650% Senior Notes due 2028 and $500 million of 5.250% Senior Notes due 2048.
In a statement, Constellation Brands said that the notes will be 'senior obligations that rank equally with all of Constellation’s other senior unsecured indebtedness, and will be guaranteed by the subsidiaries of Constellation that are guarantors under Constellation’s senior credit facility and/or senior term credit facility'.
The group intends to use the net proceeds from the offering, to help finance its pending incremental investment in Canopy Growth Corporation, valued at C$5.1 billion, or approximately $4 billion.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as the joint book-running managers of the offering.
The closing of the offering is expected to take place on 29 October.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.