New Issue: Constellation Brands sells upsized $600 million 10-year notes at par to yield 6%

By Paul A. Harris

Portland, Ore., April 10 - Constellation Brands, Inc. priced an upsized $600 million issue of non-callable 10-year senior notes (Ba1/BB+/) at par to yield 6% on Tuesday, according to a syndicate source.

The yield printed on top of price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Rabobank and Barclays Capital Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $400 million.

The Victor, N.Y.-based beverage company plans to use the proceeds for general corporate purposes, which might include reducing term loan debt, acquisitions of complementary assets or businesses, or common stock repurchases.

Issuer:	Constellation Brands, Inc.
Amount:	$600 million, increased from $400 million
Maturity:	May 1, 2022
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Rabobank, Barclays Capital Inc.
Lead manager:	Goldman Sachs & Co.
Co-manager:	Wells Fargo Securities LLC
Coupon:	6%
Price:	Par
Yield:	6%
Spread:	401 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Change-of-control put:	101%
Trade date:	April 10
Settlement date:	April 17
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	6% area
Marketing:	Quick to market

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