DBRS Assigns BBB (low) Ratings, with Stable Trends, to Molson Coors’ Senior Notes

DBRS Limited (DBRS) has today assigned a rating of BBB (low) with a Stable trend to Molson Coors Brewing Company’s (Molson Coors or the Company) new senior notes issuance. The issuance is made up of the following tranches:

(1) $500 million 1.450% Senior Notes due 2019,
(2) $1 billion 2.100% Senior Notes due 2021,
(3) $2 billion 3.000% Senior Notes due 2026,
(4) $1.8 billion 4.200% Senior Notes due 2046 and
(5) EUR 800 million 1.250% Senior Notes due 2024.

The notes issued by Molson Coors will be senior unsecured debt obligations ranking pari passu with Molson Coors’ other senior unsecured indebtedness.

In addition to the above, DBRS has also assigned a rating of BBB (low) with a Stable trend to Molson Coors International LP’s (MCI, a wholly owned indirect subsidiary of Molson Coors) new senior notes issuance, which is guaranteed by Molson Coors. The issuance is made up of the following tranches:

(1) CAD 500 million 2.840% Senior Notes due 2023 and
(2) CAD 500 million 3.440% Senior Notes due 2026.

The notes issued by MCI will be senior unsecured debt obligations of MCI and Molson Coors and will rank pari passu with other unsecured debt of MCI and Molson Coors.

The aggregate net proceeds of the above offerings by Molson Coors and MCI (collectively, the Notes) are intended to be used by Molson Coors to partially fund the previously announced acquisition from Anheuser-Busch InBev SA/NV of SABMiller plc’s 58% interest in MillerCoors LLC and all other assets primarily related to the Miller brand portfolio outside of the United States and Puerto Rico (the Acquisition), and to pay related fees and expenses of the Acquisition. The offering is not conditioned on the closing of the Acquisition or on the closing of any of the concurrent offerings. Prior to the closing of the Acquisition, Molson Coors intends to invest the net proceeds from this offering in highly liquid, short-term deposits and money market funds. In the event that the Acquisition is not consummated, the Notes will be subject to a special mandatory redemption.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Consumer Products Industry, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.