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Global drinks giant Constellation Brands is raising money to help finance its $4 billion investment in Canopy Growth.
Here’s the deal…
Victor, NY-based Constellation Brands has announced a public offering of 2.15 billion Senior notes (basically bonds as opposed to stocks) to help them finance their growing commitment to Canopy Growth, a leading Canadian cannabis producer.
The third largest brewer in the US behind AB InBev and MillerCoors, Constellation’s brand portfolio includes Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Pacifico, Ballast Point, Funky Buddha, as well as a full roster of wine and spirit offerings.
Constellation’s future?
They’re also the most heavily invested of any drinks major in the growing cannabis industry, which may help explain yesterday’s offering…
The company initially invested US$179m for a 10% stake in Canopy Growth back in October 2017.
In August this year, it committed an additional US$4 billion to acquire a 38% share of the business.
And in October, Constellation revealed that its investment was already paying off, with the value of its shares in Canopy Growth already worth an extra $1.3 billion.
This from yesterday’s announcement, and if you can translate it into something we can understand please give us a call….
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that it priced the public offering of $2.15 billion aggregate principal amount of Senior Notes, consisting of (i) $650.0 million of Senior Floating Rate Notes due 2021 (the “senior floating rate notes”); (ii) $500.0 million of 4.400% Senior Notes due 2025 (the “2025 notes”) for a public offering price of 99.812% of the principal amount of the 2025 notes; (iii) $500.0 million of 4.650% Senior Notes due 2028 (the “2028 notes”) for a public offering price of 99.720% of the principal amount of the 2028 notes; and (iv) $500.0 million of 5.250% Senior Notes due 2048 (the “2048 notes”) for a public offering price of 99.592% of the principal amount of the 2048 notes (collectively, the “notes”). The notes will be senior obligations that rank equally with all of Constellation’s other senior unsecured indebtedness, and will be guaranteed by the subsidiaries of Constellation that are guarantors under Constellation’s senior credit facility and/or senior term credit facility
Got it?
Sure you do…
And the public offering closes on October 29th if you’ve got a little pocket change and are thinking about getting in.
