Constellation Brands sells new debt to pay $700 million debt due 2020

By Devika Patel

Knoxville, Tenn., July 1 – Constellation Brands, Inc. has kept its focus on debt reduction, paying down $700 million of debt due November 2020 with proceeds from new debt issued “at very favorable rates” last quarter, the company’s chief financial officer said.

“These strong cash flow results provide us with the financial flexibility needed to continue to focus on debt paydown and liquidity,” CFO Garth Hankinson said on the company’s first quarter ended May 31 earnings conference call on Wednesday.

“During the quarter, we were able to issue debt at very favorable rates and used the proceeds to satisfy $700 million of debt coming due in November and pay down other near-term maturities,” he said.

Cash and cash equivalents were $302.8 million as of May 31, compared to $81.4 million as of Feb. 29.

Long-term debt, less current maturities, was $11,639,300,000 as of May 31, compared to $12,131,800,000 as of Feb. 29.

Constellation Brands is a Victor, N.Y.-based producer, importer and distributor of beer, wine and liquor.

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