Filed by Constellation Brands, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Constellation Brands, Inc.
Commission File No. 001-08495
The following are excerpts of Constellation Brands, Inc.s second quarter fiscal 2023 earnings call held October 6, 2022.
Corporate Participants
Garth Hankinson, Constellation
Brands, Inc. - Executive VP & CFO
Joseph Suarez, Constellation Brands, Inc. - VP of IR
William A. Newlands, Constellation Brands, Inc. - President, CEO & Director
Conference Call Participants
Andrea Faria Teixeira -
JPMorgan Chase & Co, Research Division
Bonnie Lee Herzog - Goldman Sachs Group, Inc., Research Division
Bryan Douglass Spillane - BofA Securities, Research Division
Dara Warren Mohsenian - Morgan Stanley, Research Division
Kaumil
S. Gajrawala - Crédit Suisse AG, Research Division
Kevin Michael Grundy - Jefferies LLC, Research Division
Lauren Rae Lieberman - Barclays Bank PLC, Research Division
Nadine Sarwat - Sanford C. Bernstein & Co., LLC., Research Division
Robert Edward Ottenstein - Evercore ISI Institutional Equities, Research Division
Vivien Nicole Azer - Cowen and Company, LLC, Research Division
William Bates Chappell - Truist Securities, Inc., Research Division
Presentation
Garth Hankinson
- Constellation Brands, Inc. - Executive VP & CFO
We continue to expect $35 million to $40 million
of spend in our DBA program for fiscal 23 as part of our total $265 million to $270 million of corporate spend anticipated for the full year. Comparable basis interest expense for the quarter was relatively unchanged. However, we now
expect interest expense for fiscal 23 to be between $360 million and $370 million as a result of the July equitization of the Canopy debt securities and rising interest rates.
This excludes the impact of any interest expense associated with the funding of the $1.5 billion cash consideration payable in the event a Class B
common stock reclassification closes. From a balance sheet perspective, should the reclassification be approved, on a Q2 FY 23 pro forma basis, our net leverage would increase to approximately 3.5x when considering funding for the premium
payment and excluding Canopy equity earnings.