Constellation Brands Inc. has entered into a new senior credit facility, which company leaders said would help fund expected capital needs over the next several years.
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, the Victor firm said.
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 percent 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 Robert Ryder, Constellation Brands’ chief financial officer, in a statement. “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.”
Constellation Brands ranked 10th on the most recent Rochester Business Journal list of manufacturers with 620 local workers.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
eMail
View All Comments
Print
Reprints
