Constellation Brands Inc. (STZ, STZ-B) announced that it has successfully amended its Senior Credit Facility to extend a portion of its revolving credit facility until June 2013, which was otherwise due to expire in June 2011, and extend $300 million of its $1.2 billion term loan. In addition, the company announced that it intends to give notice to call, without penalty on Feb. 25, 2010, all $250 million of its 8 1/8 percent senior subordinated notes due Jan. 15, 2012.
"Our current focus on debt reduction remains unchanged. Through strong free cash flow generation and the proceeds from asset sales, we have reduced our leverage and improved our credit profile. We decided to take advantage of our current position and improved credit markets to extend these debt maturities and prepay the 2012 senior subordinated notes, which we expect will lower interest expense," said Bob Ryder, chief financial officer.
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