By Paul A. Harris
St. Louis, Aug. 10 - Constellation Brands Inc. priced an upsized $700 million issue of 7¼% 10-year senior notes (Ba2/BB) on Thursday to yield 245 basis points over Treasuries, according to an informed source.
The notes, which priced in the middle of the Treasuries plus 240 to 250 basis points price talk, came at a dollar price of 99.20, resulting in a 7.389% yield.
Citigroup and JP Morgan were joint bookrunners for the off-the-shelf issue. The co-managers were Banc of America Securities LLC and Scotia Capital.
Proceeds will be used to repay bank debt.
The issue was upsized from $500 million.
Constellation Brands is a Fairport, N.Y., producer and marketer of beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories.
| Issuer: | Constellation Brands Inc.
|
| Amount: | $700 million (upsized from $500 million)
|
| Maturity: | Sept. 1, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, JP Morgan
|
| Co-managers: | Banc of America Securities LLC, Scotia Capital
|
| Coupon: | 7¼%
|
| Price: | 99.20
|
| Yield: | 7.389%
|
| Spread: | 245 bps
|
| Call protection: | Non-callable for life, with a make-whole call at Treasuries plus 50 bps
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 240 to 250 bps
|
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