Constellation Brands enters into new senior credit facility, which includes US$850M five-year revolving credit facility, five-year US$550M term loan A, seven-year US$250M term loan A-1
VICTOR, New York
May 7, 2012
– Constellation Brands, Inc. (NYSE: STZ), the world's leading premium wine company, announced today that it has entered into a new senior credit facility. The new agreement includes an $850 million five-year revolving credit facility, a five-year $550 million term loan A and a seven-year $250 million term loan A-1.
The new revolving credit facility is undrawn at this time. Proceeds from the new term loans were used to repay term loans under the company's previous senior credit facility. This activity follows the recently completed issuance of $600 million of 6% Senior Notes due May 2022.
"We are taking advantage of our improved credit profile and the attractive interest rate environment to enhance our financial flexibility," said Bob Ryder, chief financial officer, Constellation Brands. "This refinancing activity, along with our expected strong free cash flow, provides ample liquidity for Constellation's anticipated capital needs over the next several years. Our goal is to continue to target a leverage ratio of three to four times debt to comparable basis EBITDA during fiscal 2013."
About Constellation Brands
Constellation Brands is the world's leading premium wine company that achieves success through an unmatched knowledge of wine consumers, storied brands that suit varied lives and tastes, and talented employees worldwide. With a broad portfolio of widely admired premium products across the wine, beer and spirits categories, Constellation's brand portfolio includes Robert Mondavi, Clos du Bois, Blackstone, Arbor Mist, Estancia, Ravenswood, Ruffino, Jackson-Triggs, Inniskillin, Kim Crawford, Corona Extra, Black Velvet Canadian Whisky and SVEDKA Vodka.
Constellation Brands (NYSE: STZ and STZ.B) is a S&P 500 Index and Fortune 1000® company with more than 100 brands in our portfolio, sales in about 100 countries and operations in approximately 30 facilities. The company believes that industry leadership involves a commitment to our brands, to the trade, to the land, to investors and to different people around the world who turn to our products when celebrating big moments or enjoying quiet ones. We express this commitment through our vision: to elevate life with every glass raised. To learn more about Constellation, visit the company's website at www.cbrands.com.