Constellation Brands eyes $1.55 billion offering of notes due 2021, 2023; pricing Tuesday

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., April 30 - Constellation Brands Inc. is planning to price a $1.55 billion offering of non-callable senior notes on Tuesday in tranches due in 2021 and in 2023, according to a market source and a 424B3 filing with the Securities and Exchange Commission.

An investor call is scheduled for 11 a.m. ET on Tuesday, and sizes of the tranches are yet to be determined.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Rabobank, Barclays and Wells Fargo Securities LLC are the joint bookrunners

The co-managers for the SEC-registered notes are HSBC Securities (USA) Inc. and Mitsubishi UFJ Securities.

The notes feature a 101% poison put.

Proceeds will be used to fund a portion of the acquisition of the remaining 50% ownership in Crown Imports LLC, Grupo Modelo's Piedras Negras brewery and an irrevocable, fully paid license to produce and exclusively import, market and sell the Modelo brands and certain extensions in the United States.

Constellation is a Victor, N.Y.-based wine, beer and spirits company.

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