Constellation Brands Credit Agreement

Constellation Brands, a leading wine, beer, and spirits company, has recently announced a new $2.15 billion credit agreement with a group of lenders. The deal, which replaces the previous $1.5 billion credit agreement, is intended to provide increased financial flexibility and support the company`s ongoing operations and growth initiatives.

The credit agreement is a significant move for Constellation Brands, which has seen tremendous growth in recent years. The company has expanded its portfolio through strategic acquisitions, including the purchase of Craft Brew Alliance and the rights to Modelo`s U.S. beer business. These acquisitions have allowed Constellation Brands to diversify its portfolio and tap into new markets, driving revenue growth and market share.

The new credit agreement is structured as a five-year revolving credit facility, which provides Constellation Brands with the flexibility to access funding as needed. The facility can be used for general corporate purposes, including working capital, capital expenditures, and acquisitions. The agreement also includes an option to extend the maturity date by one year and a provision for increasing the facility size up to $3 billion.

In addition to providing financial flexibility, the credit agreement also includes sustainability-linked provisions. These provisions tie Constellation Brands` borrowing costs to the company`s efforts to reduce greenhouse gas emissions, conserve water, and promote sustainable agriculture. This demonstrates the company`s commitment to sustainability and aligns with the growing trend of ESG (Environmental, Social, and Governance) investing.

The new credit facility is also a demonstration of the ongoing support Constellation Brands has from its lenders. The lending group includes 23 institutions, reflecting the company`s strong credit standing and financial stability. This support allows Constellation Brands to continue pursuing its growth initiatives and expanding its portfolio.

In summary, the new $2.15 billion credit agreement is a significant move for Constellation Brands, providing financial flexibility and sustainable funding options. It is a demonstration of the company`s ongoing growth and expansion initiatives, as well as the support it has from its lending group. The sustainability-linked provisions are particularly noteworthy, as they align with the growing trend of ESG investing and demonstrate the company`s commitment to sustainability.