Brown-Forman to redeem all $250 million of 5% senior notes due 2014

By Tali David

Minneapolis, Jan. 23 - Brown-Forman Corp. plans to redeem all $250 million of its 5% notes due 2014 by exercising a make-whole call provision provided for in the notes, according to a press release.

The notes will be redeemed on Feb. 25.

The company will use a combination of cash and short-term borrowings to fund the redemption.

As a result, Brown-Forman said it expects to record in its fourth fiscal quarter pre-tax expenses associated with the redemption of about $9 million. The redemption is expected to lower pre-tax interest expense by roughly $2 million in the fourth quarter of fiscal 2013 and $8 million in fiscal 2014.

Brown-Forman makes Jack Daniel's whiskey and other alcoholic beverages. The company is based in Louisville, Ky.

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