Molson Coors adds $2 billion revolver, extends maturity to 2028

By Mary-Katherine Stinson

Lexington, Ky., June 28 – Molson Coors Brewing Co. entered into an amended and restated credit agreement with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement adds a five-year revolving credit facility of up to $2 billion with the option to request an increase up to $500 million provided it would not cause the company’s leverage ratio to exceed 4x on a pro forma basis.

Letters of credit will be issued as agreed by the parties up to a total of $150 million.

The agreement matures June 26, 2028, subject to a two-year extension in certain circumstances.

Loans under the agreement will bear interest at varying rates dependent on the currency: dollar loans will bear interest at SOFR; Canadian dollar loans at the greater of the Canadian Prime rate and one-month CDOR plus 50 basis points; sterling-denominated loans at Sonia; and euro-denominated loans at Euribor, in each case plus an applicable margin based on the company’s index debt.

For the SOFR loans, the applicable margin ranges from 87.5 to 187.5 bps.

Canadian dollar denominated bills of exchange will also bear interest at an applicable margin based on the index debt rating.

There is a commitment fee on the daily average undrawn commitment of each lender, ranging from 10 to 30 bps, also dependent on the index debt rating.

The June 26 amendment included subsidiary borrowers Molson Coors Brewing Co. (UK) Ltd., Molson Canada 2005, Molson Coors Canada Inc. and Molson Coors International LP.

Joining Citibank, NA as joint lead arrangers and bookrunners are BofA Securities, Inc. and Goldman Sachs Bank USA.

Bank of America, NA and Goldman Sachs Bank USA are co-syndication agents.

Molson Coors is a beer brewer based in both Golden, Colo. and Montreal.

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