Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Constellation Brands Inc. > News item |
Constellation Brands increases bridge loan to $4.38 billion
By Angela McDaniels
Tacoma, Wash., Feb. 15 - Constellation Brands, Inc. increased its bridge loan to $4,375,000,000 from $1,875,000,000, according to an 8-K filing with the Securities and Exchange Commission.
The company entered into the bridge loan in July 2012 in connection with its plan to acquire the remaining 50% interest in Crown Imports LLC. The bridge loan will now also back its purchase of Compania Cervecera de Coahuila, SA de CV.
According to the filing, Constellation plans to actually finance the acquisitions with cash, incremental term loans and revolver borrowings, an accounts receivable securitization facility and notes or debt securities.
The amended and restated bridge loan includes a $1.85 billion term loan A and a $2,525,000,000 term loan B. The sizes were increased from $650 million and $1,225,000,000, respectively.
Pricing is unchanged at Libor plus 475 basis points for the first three months and increasing by 50 bps every three months thereafter.
The bridge loan A will be reduced by any debt securities used to pay for the acquisitions. The bridge loan B will be reduced by the amount of any revolver borrowings or term debt, together with any cash (other than cash that does not represent the proceeds of debt in an amount not to exceed $370 million) that is used.
The bridge loan commitments expire on the earlier of Dec. 30, 2013 and the completion of the acquisitions.
Bank of America, NA is the administrative agent.
Constellation Brands is a Victor, N.Y.-based wine, beer and spirits company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.