Brown-Forman adds $500 million of fixed-rate debt to support flexible corporate funding needs, including potential buybacks, investments, and debt repayment.
LOUISVILLE, Ky.--(BUSINESS WIRE)--
Brown-Forman Corporation (NYSE: BFA, BFB) today announced the pricing of a $500 million 5-year senior unsecured note.The 5.375% 5-year senior notes are due October 15, 2031. Brown-Forman intends to use the net proceeds from the offering for general corporate purposes, which may include dividends, repurchases of stock by the company pursuant to any authorized stock repurchase program or otherwise, repaying, redeeming, or repurchasing existing debt, including commercial paper, and for working capital, capital expenditures, acquisitions, and funding the company’s pension plan obligations.
Barclays Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and U.S. Bancorp Investments, Inc. are acting as joint book-running managers.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any debt securities of Brown-Forman Corporation, nor shall there be any sale of debt securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The debt offering will be made only by means of a prospectus supplement and accompanying base prospectus forming part of an effective shelf registration statement.
Copies of the prospectus and prospectus supplement relating to the senior notes may be obtained for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Barclays Capital Inc. toll-free at 1-888-603-5847, BofA Securities, Inc. toll-free at 1-800-294-1322, Citigroup Global Markets Inc. toll-free at 1-800-831-9146, J.P. Morgan Securities LLC collect at 1-212-834-4533, or U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607.
Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 4,900 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
Sue Perram, Vice President, Director, Investor Relations
Sue_Perram@b-f.com
Source: Brown-Forman Corporation
Key Terms
senior unsecured notefinancial
A senior unsecured note is a debt obligation issued by a company that has repayment priority over subordinated debt but is not backed by specific collateral. In a bankruptcy or restructuring the holders stand ahead of junior creditors for repayment but behind secured lenders; because repayment depends on the issuer’s general credit rather than pledged assets, investors judge these notes by the issuer’s financial strength and expected recovery prospects, like being early in line but without a reserved seat.
commercial paperfinancial
Short-term IOUs issued by companies to raise cash quickly, sold to investors for a fixed, brief period (usually up to a few months) and repaid with interest at maturity. Think of it as a business borrowing from the public without putting up collateral, like a friend asking to borrow money for a few weeks with a promise to pay back a bit more. Investors watch commercial paper to gauge a company’s short-term funding health and credit risk; difficulty issuing it or rising yields can signal liquidity stress or higher perceived risk.
shelf registration statementregulatory
A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.
prospectus supplementregulatory
A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.
joint book-running managersfinancial
Joint book-running managers are the lead banks or financial firms responsible for organizing and overseeing the sale of a large financial offering, such as a company’s stock or bonds. They coordinate efforts to set the price, attract investors, and ensure the offering is successful. Their role is important to investors because they help ensure the offering is well-managed, properly priced, and accessible to a wide range of buyers.
