Constellation Brands Amends Its Senior Credit Facility
17 July 2015 - 6:30AM
VICTOR, N.Y., July 16, 2015 -
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading
beverage alcohol company announced today that it has entered into
an amendment to its senior credit facility. The amendment
includes:
-
Increasing the existing revolving credit
facility by $300 million to $1.15 billion;
-
A new $1.27 billion U.S. Term A loan facility,
which combines and increases the existing U.S. Term A and Term A-2
loan facilities by $200 million; and
-
A new European Term A loan facility of $1.43
billion, which combines the existing European Term A loan and
European Term B-1 loan facilities.
The maturity date of these facilities will be
extended to July 16, 2020. The U.S. Term A-1 loan facility amount
of $241.9 million remains the same with an extended maturity of
July 16, 2021.
The amendment provides for a reduction in
borrowing rates and modifies certain financial and other covenants
and includes the suspension of collateral and certain covenants if
the company receives an Investment Grade Rating from both S&P
and Moody's. The new revolving credit facility remains undrawn at
this time. Proceeds from the increase in the U.S. Term A loan
facility are expected to be used to fund a portion of the recently
announced acquisition of the Meiomi wine brand.
"Given the recent growth in our business and
favorable market conditions, it is an opportune time for us to
appropriately size our credit agreement to provide future financial
flexibility," said David Klein, chief financial officer,
Constellation Brands. "The amended credit agreement and our
expected strong operating cash flow generation should provide ample
liquidity for Constellation's anticipated capital needs into the
foreseeable future. Our goal is to continue to target a leverage
ratio of three to four times debt to comparable basis EBITDA."
About Constellation
Brands
Constellation Brands (NYSE: STZ and STZ.B) is a leading
international producer and marketer of beer, wine and spirits with
operations in the U.S., Canada, Mexico, New Zealand and Italy.
Constellation is the number three beer company in the U.S. with
high-end, iconic imported brands including Corona Extra, Corona
Light, Modelo Especial, Negra Modelo and Pacifico. Constellation is
also the world's leader in premium wine selling great brands that
people love including Robert Mondavi, Clos du Bois, Kim Crawford,
Rex Goliath, Mark West, Franciscan Estate, Ruffino and
Jackson-Triggs. The company's premium spirits brands include SVEDKA
Vodka and Black Velvet Canadian Whisky.
Based in Victor, N.Y., the company believes that
industry leadership involves a commitment to brand-building, our
trade partners, the environment, our investors and to consumers
around the world who choose our products when celebrating big
moments or enjoying quiet ones. Founded in 1945, Constellation has
grown to become a significant player in the beverage alcohol
industry with more than 100 brands in its portfolio, sales in
approximately 100 countries, about 40 facilities and approximately
7,600 talented employees. We express our company vision: to elevate
life with every glass raised. To learn more, visit
www.cbrands.com.
Forward-Looking
Statements
This news release contains forward-looking statements. The word
"expected" and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Those statements may
relate to Constellation Brands' business strategy, future
operations, prospects, plans and objectives of management, as well
as information concerning expected actions of third parties. All
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those set
forth in or implied by the forward-looking statements. There can be
no assurance the transaction to acquire the Meiomi wine brand will
occur or will occur on the timetable projected by Constellation
Brands. All forward-looking statements speak only as of the date of
this news release. Constellation Brands undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
In addition to risks associated with ordinary
business operations, the forward-looking statements contained in
this news release are subject to other risks and uncertainties,
including completion of the acquisition of the Meiomi wine brand
under the expected terms, free cash flow, operating cash flow, and
capital expenditures to support long-term growth may vary from
management's current estimates, and other factors and uncertainties
disclosed from time to time in Constellation Brands, Inc.'s filings
with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the fiscal year ended Feb. 28, 2015, which
could cause actual future performance to differ from current
expectations.
CONTACTS
Media
Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141
Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170
# # #
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Constellation Brands Inc via Globenewswire
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