US: Constellation Brands lines up Crown Imports funds

Constellation Brands has raised US$1.55bn in a debt offering to help pay for its full takeover of Crown Imports. 

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The company said today (15 May) it has also taken on a new credit agreement that will give access to a further $1.5bn. Constellation agreed in June to buy the remaining half of Crown Imports for $1.85bn, as a result of Anheuser-Busch InBev's deal to buy Modelo. 

Constellation will also pay $2.9 billion for the Piedras Negras brewery and perpetual rights for Corona and the Modelo brands in the US, according to a company spokesperson. The group has committed up to $600m to upgrading the Mexican brewery.

Last month, an analyst said the brewery will help Constellation reduce margins and tackle rising costs.

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