By Paul A. Harris
St. Louis, Nov. 28 - Constellation Brands, Inc. priced $500 million of 8 3/8% seven-year senior notes (Ba3/BB-) at 99.344 to yield 8½% on Wednesday, according to an informed source.
The yield came at the wide end of the 8 3/8% to 8½% price talk.
Banc of America Securities LLC ran the books for the quick-to-market registered issue. Goldman Sachs & Co., Rabo Securities and Scotia Capital were co-managers.
Proceeds, together with borrowings under the company's senior credit facility, will be used to finance the pending acquisition of Beam Wine Estates, Inc.
Constellation is a Fairport, N.Y., producer and marketer of beverage alcohol in the wine, spirits and imported beer categories.
| Issuer: | Constellation Brands, Inc.
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Co-managers: | Goldman Sachs & Co., Rabo Securities, Scotia Capital
|
| Coupon: | 8 3/8%
|
| Price: | 99.344
|
| Yield: | 8½%
|
| Spread: | 470 bps
|
| Call protection: | Make-whole at Treasuries plus 50 basis points
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 5
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 8 3/8% to 8½%
|
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