Constellation Brands Secures $500 Million Term Loan Facility for Corporate Flexibility

Constellation Brands has entered into a new Term Loan Credit Agreement providing up to $500 million in delayed draw term loans, with Bank of America serving as administrative agent. The facility allows for up to two draws and will be used for general corporate purposes, including potential debt repayment.

The facility, which terminates by November 7, 2025, or earlier upon full draw, includes two-year maturities from the initial borrowing date. Interest rates will vary based on Constellation’s credit rating, with Term SOFR-based loans carrying a margin of 0.750% to 1.250% and base rate loans ranging from 0.000% to 0.250%. A ticking fee of 0.080% on undrawn commitments begins accruing 30 days after execution.

Covenants include limits on subsidiary debt, liens, and related-party transactions. Financial covenants mirror those in Constellation’s recently amended revolving credit agreement, including interest coverage and leverage ratio thresholds. The agreement includes customary default provisions.

Several participating lenders and agents are longstanding banking and advisory partners of the company.