Constellation Brands firms $1 billion term B at Libor plus 200 bps

By Sara Rosenberg

New York, April 26 - Constellation Brands Inc. (CIH International SARL) finalized pricing on its $1 billion seven-year term loan B at Libor plus 200 basis points, the tight end of the Libor plus 200 bps to 225 bps talk, according to a market source.

Also, a step-down was added to the term loan B to Libor plus 175 bps when consolidated leverage is less than 4.25 times, the source said. This step will only be available after the delivery of financials for two full quarters following closing.

The loan still has a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Friday, the source added.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and Barclays are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Grupo Modelo's U.S. business.

Constellation Brands is a Victor, N.Y.-based wine company.

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