Constellation Brands gets debt commitment for acquisition of Fortune's wines business

By Sara Rosenberg

New York, Nov. 14 - Constellation Brands Inc. has received a debt commitment, and has capacity under its existing revolving credit facility, to fund the acquisition of Fortune Brands Inc.'s U.S. wine business, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The company said in a recent conference call that it has some flexibility in terms of the new debt and is still working with the banks to figure out the specifics.

At close, debt to EBITDA will be around 5.2 times.

Constellation is buying Fortune's wine business for $885 million, subject to post-closing adjustments.

The transaction is expected to close by Dec. 31.

Constellation is a Fairport, N.Y., producer and marketer of beverage alcohol in the wine, spirits and imported beer categories.

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