Daily News: May 7, 2012

Constellation Brands Enters Into New Senior Credit Facility

Constellation Brands, a premium wine company, entered into a new senior credit facility comprised of an $850 million five-year revolving credit facility, a five-year $550 million term loan A and a seven-year $250 million term loan A-1.

The new revolving credit facility is undrawn at this time. Proceeds from the new term loans were used to repay term loans under the company’s previous senior credit facility. This activity follows the recently completed issuance of $600 million of 6% Senior Notes due May 2022.

“We are taking advantage of our improved credit profile and the attractive interest rate environment to enhance our financial flexibility,” said Bob Ryder, chief financial officer, Constellation Brands. “This refinancing activity, along with our expected strong free cash flow, provides ample liquidity for Constellation’s anticipated capital needs over the next several years. Our goal is to continue to target a leverage ratio of three to four times debt to comparable basis EBITDA during fiscal 2013.”