Molson Coors gets $750 million five-year revolving credit facility

By Angela McDaniels

Tacoma, Wash., June 19 – Molson Coors Brewing Co. entered into a credit agreement on Wednesday that provides for a $750 million revolving credit facility due June 18, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $100 million sublimit for letters of credit. It has an accordion feature for an amount not to exceed the sum of $250 million plus such additional amounts as would not cause the company’s leverage ratio to exceed 3.5 to 1.0 on a pro forma basis after giving effect to such increase that is not committed by any lender.

The interest rate for U.S. dollar-denominated loans and euro-denominated loans is Libor plus 87.5 basis points to 200 bps. For Canadian dollar-denominated loans, the interest rate is 50 bps plus the greater of the Canadian Prime rate and CDOR. The exact margin depends on the company’s debt ratings.

The commitment fee ranges from 10 bps to 30 bps.

Molson Coors is the guarantor. Its subsidiaries Molson Canada 2005, Molson Coors International LP, Molson Coors Canada Inc. and Molson Coors Brewing Co. (UK) Ltd. are borrowers under the facility.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and UBS Securities LLC are the joint lead arrangers and joint bookrunners. Bank of America Merrill Lynch and UBS Securities are co-syndication agents.

Deutsche Bank AG, New York Branch, is the administrative agent and an issuing bank. Deutsche Bank AG, Canada Branch is the Canadian administrative agent. Bank of America, NA is an issuing bank.

The credit agreement requires the company to maintain a maximum leverage ratio of not greater than 3.5 to 1.0 as of the last day of any fiscal quarter.

The credit agreement replaces the $400 million credit agreement due April 10, 2015 and the $550 million credit agreement due April 3, 2016, both of which were terminated on Wednesday.

Molson Coors is a beer brewer based in both Denver and Montreal.

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