Constellation Brands Canada flexes term loan B to Libor plus 375 bps

By Sara Rosenberg

New York, Nov. 10 – Constellation Brands Canada Inc. reduced pricing on its $260 million seven-year covenant-light term loan B to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and amortization of 1% per annum.

Along with the U.S. term loan B, the company is getting a C$66 million term loan B.

Morgan Stanley Senior Funding Inc., Antares Capital LP, BMO Capital Markets and Scotiabank are the joint lead arrangers and joint bookrunners on the deal (Ba3/BB-).

Commitments are due at 10 a.m. ET on Monday, accelerated from Tuesday, the source added.

Proceeds will be used to fund the acquisition of the company by Ontario Teachers’ Pension Plan from Constellation Brands for about C$1.03 billion.

Closing is expected before year-end.

Constellation Brands Canada is a Mississauga, Ont.-based operator of wineries and Wine Rack stores.

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