By Cristal Cody
Tupelo, Miss., Jan. 29 – Constellation Brands, Inc. priced $1.9 billion of fixed-rate senior notes (Baa3/BBB-) in three tranches on Monday, according to a market source.
The company sold $600 million of 3.2% five-year notes at a spread of Treasuries plus 72 basis points.
Constellation Brands priced $700 million of 3.6% 10-year notes with a Treasuries plus 92 bps spread.
In the final $600 million tranche, the company placed the 4.1% 30-year notes at a spread of 117 bps over Treasuries.
The tranches all priced on the tight side of guidance and better than initial talk.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to redeem the company’s $600 million of 6% senior notes due 2022, with a $74.4 million make-whole premium, and for general corporate purposes.
Constellation Brands is a Victor, N.Y.-based producer, importer and distributor of beer, wine and liquor.
| Issuer: | Constellation Brands, Inc.
|
| Amount: | $1.9 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch and J.P. Morgan Securities LLC
|
| Trade date: | Jan. 29
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2023
|
| Coupon: | 3.2%
|
| Spread: | Treasuries plus 72 bps
|
| Price guidance: | Treasuries plus 75 bps area, initially talked at 85 bps area
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 3.6%
|
| Spread: | Treasuries plus 92 bps
|
| Price guidance: | Treasuries plus 95 bps area, initially talked at 110 bps area
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2048
|
| Coupon: | 4.1%
|
| Spread: | Treasuries plus 117 bps
|
| Price guidance: | Treasuries plus 120 bps area, initially talked at 135 bps area
|
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