Constellation Brands tapped the bank market last week for a $400 million add-on to its existing revolver. The additional funds will be used to back the company's acquisition of the Svedka vodka brand and business for approximately $384 million. Pricing for the add-on could not be determined.
Fairport, N.Y.-based Constellation hit up JPMorgan, Citigroup and Scotia Capital for a $1.4 billion credit in May to back its acquisition of Vincor International (CIN, 6/1). That deal consists of a $500 million revolver, a $700 million term loan "A" and a $2.3 billion "B" term loan. The debt is priced at LIBOR plus 1 1/4% on the pro rata and LIBOR plus 1 1/2% for the "B" tranche.
The supplier and marketer of alcoholic beverages announced last Tuesday it was acquiring the imported Swedish brand from Guillaume Cuvelier and Belgian-based Alcofinance S.A. Constellations' portfolio includes wine, spirits and imported beers. Calls to Thomas Summer, cfo, were not returned.