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Adolph Coors Co. could offer $300M in unsecured debt; 1st in its history.

Adolph Coors Co. could offer $300M in unsecured debt; 1st in its history

Last week, Adolph Coors Co. filed with the Securities and Exchange Commission, possibly indicating the company is ready to go into debt for the first time in the company's history.

The brewer said it may offer as much as $300 million in senior unsecured debt, underwritten by Dillon Read & Co.

The company said it will use the money for its planned aluminum rolling plant in San Antonio, TX, and possible acquisitions or construction of brewing operations.

Coors indicated that approximately $150 million would go toward the aluminum rolling mill, which should cut the cost of producing cans.

Industry analysts said the move is necessary if Coors wants to increase its market share and take advantage of some f the weaknesses of its competitors. The move toward taking on some form of debt also highlights the philosophical changes of the younger generation of Coors' management.

"Heretofore, they've said 'no debt,'" said Joseph Doyle, Smith Barney, Harris Upham & Co. "It's a big philosophical change."
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Publication:Modern Brewery Age
Date:Mar 26, 1990
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