Published on 1/9/2024 in the Prospect News Investment Grade Daily.
New Issue: Constellation Brands sells $400 million 4.8% five-year notes Treasuries plus 85 bps
By Wendy Van Sickle
Columbus, Ohio, Jan. 9 – Constellation Brands, Inc. priced $400 million of 4.8% five-year senior notes (Baa3/BBB) at 99.889 to yield 4.825% on Tuesday, according to a news release and an FWP filing with the Securities and Exchange Commission.
The notes priced at 85 basis points over Treasuries.
There will be make-whole call protection until Dec. 15, 2028, when the notes become callable at par.
The notes will have change-of-control protection at 101.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., PNC Capital Markets LLC and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds are earmarked for general corporate purposes, including working capital, funding capital expenditures, repayment of debt and other business opportunities.
The international beverage alcohol company is based in Victor, N.Y.
| Issuer: | Constellation Brands, Inc.
|
| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2029
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| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., PNC Capital Markets LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., MUFG Securities Americas Inc., M&T Securities, Inc., TD Securities (USA) LLC, Truist Securities, Inc., Academy Securities, Inc., Fifth Third Securities, Inc., Rabo Securities USA, Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | M&T Trust Co.
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| Counsel to issuer: | McDermott Will & Emery LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 4.8%
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| Price: | 99.889
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| Yield: | 4.825%
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| Spread: | 85 bps over Treasuries
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| Call: | Make-whole call prior to Dec. 15, 2028 at Treasuries plus 15 bps, followed by a par call
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| Change of control: | At 101 plus interest
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| Trade date: | Jan. 9
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| Settlement date: | Jan. 11
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Distribution: | SEC registered
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| Cusip: | 21036PBQ0
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