Constellation Brands to sell $1.2 billion of notes in three tranches

By Devika Patel

Knoxville, Tenn., May 2 – Constellation Brands Inc. plans to sell senior notes (Baa3/BBB-) in three fixed-rate tranches, according to a 424B3 filed with the Securities and Exchange Commission. Moody’s Investors Service reported that Constellation Brands will issue $1.2 billion of notes in five-, 10- and 30-year tranches.

The notes feature a make-whole call and then a par call.

Bookrunners are BofA Merrill Lynch and J.P. Morgan Securities LLC.

The Victor, N.Y.-based wine company plans to use the proceeds to repay all $700 million outstanding 7.25% senior notes due 2017 and repay a portion of the debt under the company’s U.S. term A loan.

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