Bacardi launches offering of guaranteed notes

By Cristal Cody

Tupelo, Miss., April 24 – Bacardi Ltd. (Ba1/BBB-/BBB-) announced on Tuesday it had launched an offering of guaranteed notes in a Rule 144A and Regulation S transaction.

The notes will be guaranteed by Bacardi’s indirect subsidiaries, Bacardi-Martini BV, Bacardi Corp. and Bacardi U.S.A., Inc.

As previously reported, the company held fixed income investor calls on Monday.

BofA Merrill Lynch, Barclays and Citigroup Global Markets Inc. are the arrangers.

Bacardi said proceeds from the deal will be used primarily to fund the acquisition of about 70% of shares of Patron Spirits International AG that Bacardi does not already own and the redemption of all of Bacardi’s $250 million of 8.2% notes issued March 31, 2009. The remainder of funds will be used for general corporate purposes.

On Friday, Moody’s Investors Service dropped the company’s senior ratings to junk from Baa1 following Bacardi’s receipt of Mexican regulatory approval to acquire the remaining stake in Patron. The deal is valued at about $5.1 billion.

S&P Global Ratings downgraded the company’s rating by two notches to BBB- on Friday.

Bacardi is a privately held spirits company based in Hamilton, Bermuda.

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