Gold prices steady ahead of Fed decision; weekly weakness noted
LOUISVILLE, KY - Brown-Forman Corporation (NYSE:BF.A) (NYSE:BF.B), a leader in the beverage industry, has successfully extended its credit agreement, now set to terminate on May 26, 2029. This extension adds an additional year to the previous expiration date of May 26, 2028. The company maintains strong financial health with a current ratio of 3.49, indicating robust liquidity position.
The company, known for its iconic brands in wines and spirits, entered into a Second Amended and Restated Five-Year Credit Agreement as of May 26, 2023, with U.S. Bank National Association serving as the Administrative Agent. Other parties to the agreement include Bank of America, N.A., Barclays (LON:BARC) Bank PLC, Citibank, N.A., and JPMorgan Chase (NYSE:JPM) Bank, N.A., acting as co-Syndication Agents, with The Bank of Nova Scotia (NYSE:BNS) as Documentation Agent.
On Monday, Brown-Forman, headquartered in Louisville, Kentucky, received consent from its lenders to extend the maturity of this agreement. The terms and conditions of the Credit Agreement, including the commitments from the participating lenders, remain unchanged and in full force.
The extension of the credit agreement ensures that Brown-Forman maintains its strong liquidity position and financial flexibility moving forward. This strategic financial management decision underscores the company’s careful planning and solid relationship with its lenders. According to InvestingPro data, the company operates with a moderate debt-to-equity ratio of 0.75, reflecting prudent financial management. For deeper insights into Brown-Forman’s financial health metrics and future outlook, investors can access additional analysis on InvestingPro.
Brown-Forman’s portfolio includes a variety of well-known beverages, and this financial move is seen as a step to support ongoing operations and future growth initiatives. The company’s Class A and Class B Common Stock, as well as its 1.200% Notes due 2026 and 2.600% Notes due 2028, are traded on the New York Stock Exchange. InvestingPro analysis suggests the stock is currently undervalued, despite maintaining dividend payments for 55 consecutive years. The stock has experienced a significant decline of about 25% over the past six months, potentially presenting an opportunity for value investors. Discover more exclusive insights and detailed valuation metrics with an InvestingPro subscription.
This financial update is based on a press release statement filed with the Securities and Exchange Commission on Thursday, April 3, 2025. The original Credit Agreement was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 30, 2023.
In other recent news, Brown-Forman Corporation reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.57 compared to the consensus estimate of $0.55. Despite a 3% year-over-year decline in reported net sales to $1.0 billion, the company’s organic net sales grew by 6% during the quarter. Brown-Forman reaffirmed its full-year outlook, projecting organic net sales and operating income growth of 2% to 4% for fiscal 2025. For the nine months ending January 31, 2025, reported net sales decreased by 4% to $3.1 billion, while organic net sales grew by 2%. The company’s whiskey portfolio showed stability with flat reported net sales and 2% organic growth, whereas its tequila portfolio faced challenges with a 15% decline in net sales due to competitive pressures and economic issues in Mexico. Brown-Forman’s gross margin contracted by 150 basis points to 59.4%, influenced by higher costs and foreign exchange impacts. The company also recognized a $78 million gain from the sale of its investment in The Duckhorn Portfolio, Inc., which added $0.14 to its diluted earnings per share. Despite market uncertainties, Brown-Forman maintained its quarterly dividend of $0.2265 per share, continuing its long-standing tradition of regular cash dividends.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.