VICTOR, N.Y. (AP) — Wine company Constellation Brands plans to use proceeds from a debt offering, coupled with available cash and borrowings under a senior credit facility, to fund its Crown Imports LLC transaction.
The Victor, N.Y. company's stock climbed $1.12, or 3.7 percent, to $31.80 in afternoon trading Wednesday. The shares hit an all-time high of $32.25 earlier in the session.
Constellation Brands Inc. agreed in June to buy partner Grupo Modelo's 50 percent stake in Crown Imports for $1.85 billion.
The company said late Tuesday that it anticipates about $641 million in net proceeds from the sale of $650 million senior notes due March 2023. The net proceeds amount takes out expenses and underwriters discounts.
Constellation's acquisition of the remaining stake in Crown Imports that it doesn't already own is conditioned on Anheuser-Busch InBev closing on its deal to buy the half of Grupo Modelo that it doesn't already own for $20.1 billion.
The Anheuser-Busch transaction is expected to close in 2013's first quarter.
Constellation, whose brands include Robert Mondavi, Simi and Ruffino, also closed on an amendment to its 2012 credit agreement. This provides for a $575 million delayed draw term loan that can be accessed to finance part of the Crown Imports deal.