MillerCoors Purchases Group Annuity Contract to Secure Pension Benefits
02 December 2017 - 9:00AM
Business Wire
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) announced
today that its wholly-owned subsidiary, MillerCoors LLC, has closed
on an agreement to purchase a group annuity contract from Athene
Annuity and Life Company, a subsidiary of Athene Holding Ltd.
(“Athene”), under which Athene will assume from the MillerCoors LLC
Pension Plan (the “Plan”) obligations to pay future pension
benefits to over 6,000 retirees and beneficiaries. By transferring
the obligations to Athene, MillerCoors will reduce its pension
projected benefit obligation by over $900 million.
Starting May 1, 2018, Athene will begin making benefit payments
to the affected plan participants along with providing ongoing
administrative services. Plan participants will receive the same
monthly benefit they were previously receiving from the Plan.
This action will serve to reduce the overall size of the Plan,
future cost volatility and annual Plan administrative expenses.
MillerCoors engaged State Street Global Advisors as an
independent fiduciary to carefully evaluate and choose the insurer
based on financial strength, qualifications and overall
capabilities, and it selected Athene as the annuity provider.
Willis Towers Watson served as strategic advisors and Jones Day
served as legal counsel to MillerCoors in this transaction.
About Molson Coors
With a story that starts in 1774, Molson Coors has spent
centuries defining brewing greatness. As one of the largest global
brewers, Molson Coors works to deliver extraordinary brands that
delight the world’s beer drinkers. From Coors Light, Miller Lite,
Carling, Staropramen and Sharp’s Doom Bar to Leinenkugel’s Summer
Shandy, Blue Moon Belgian White, Creemore Springs Premium Lager and
Crispin Cider, Molson Coors offers a beer for every beer lover.
Molson Coors operates through Molson Coors Canada, MillerCoors,
Molson Coors Europe and Molson Coors International. The company is
not only committed to brewing extraordinary beers, but also running
a business focused on respect for its employees, communities and
drinkers, which means corporate responsibility and accountability
right from the start. It has been listed on the Dow Jones
Sustainability North American Index for the past seven years. To
learn more about Molson Coors Brewing Company, visit
molsoncoors.com, ourbeerprint.com or on Twitter through
@MolsonCoors.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of the U.S. federal securities laws.
Generally, the words “aims,” “believe,” “expect,” “intend,”
“anticipate,” “project,” “will,” and similar expressions identify
forward-looking statements, which generally are not historic in
nature. Forward-looking statements include those relating to
benefits to be paid by Athene, the expected reduction to the
Company’s pension projected benefit obligation, and the expected
impact of the transaction on the size of the Plan, future cost
volatility, and administrative expenses. Although Molson Coors
believes that the assumptions upon which its forward-looking
statements are based are reasonable, it can give no assurance that
these assumptions will prove to be correct. Important factors that
could cause actual results to differ materially from Molson Coors’
projections and expectations are disclosed in Molson Coors’ filings
with the SEC. These factors include, among others, health of the
beer industry and our brands in our markets; economic conditions in
our markets; stock market and commodities performance; consumer
demand; global economic conditions; changes in laws and
regulations; development of new technology; costs of resources and
raw materials; force majeure events; changes in our supply chain
system; success of our joint ventures; future financial and
operating performance within and related to the industry; and other
risks discussed in our filings with the SEC . All forward-looking
statements in this Press Release are expressly qualified by such
cautionary statements and by reference to the underlying
assumptions. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. We do
not undertake to update forward-looking statements, whether as a
result of new information, future events or otherwise.
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Molson Coors Brewing CompanyNews
MediaMarty Maloney, 312-496-5669orColin Wheeler,
303-927-2443orInvestor
RelationsDave Dunnewald, 303-927-2334orKevin Kim,
303-927-2515
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