MillerCoors Purchases Group Annuity Contract to Secure Pension Benefits

December 01, 2017

DENVER & MONTREAL--(BUSINESS WIRE)-- Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) announced today that its wholly-owned subsidiary, MillerCoors LLC, has closed on an agreement to purchase a group annuity contract from Athene Annuity and Life Company, a subsidiary of Athene Holding Ltd. (“Athene”), under which Athene will assume from the MillerCoors LLC Pension Plan (the “Plan”) obligations to pay future pension benefits to over 6,000 retirees and beneficiaries. By transferring the obligations to Athene, MillerCoors will reduce its pension projected benefit obligation by over $900 million.

Starting May 1, 2018, Athene will begin making benefit payments to the affected plan participants along with providing ongoing administrative services. Plan participants will receive the same monthly benefit they were previously receiving from the Plan.

This action will serve to reduce the overall size of the Plan, future cost volatility and annual Plan administrative expenses.

MillerCoors engaged State Street Global Advisors as an independent fiduciary to carefully evaluate and choose the insurer based on financial strength, qualifications and overall capabilities, and it selected Athene as the annuity provider. Willis Towers Watson served as strategic advisors and Jones Day served as legal counsel to MillerCoors in this transaction.

About Molson Coors

With a story that starts in 1774, Molson Coors has spent centuries defining brewing greatness. As one of the largest global brewers, Molson Coors works to deliver extraordinary brands that delight the world’s beer drinkers. From Coors Light, Miller Lite, Carling, Staropramen and Sharp’s Doom Bar to Leinenkugel’s Summer Shandy, Blue Moon Belgian White, Creemore Springs Premium Lager and Crispin Cider, Molson Coors offers a beer for every beer lover.

Molson Coors operates through Molson Coors Canada, MillerCoors, Molson Coors Europe and Molson Coors International. The company is not only committed to brewing extraordinary beers, but also running a business focused on respect for its employees, communities and drinkers, which means corporate responsibility and accountability right from the start. It has been listed on the Dow Jones Sustainability North American Index for the past seven years. To learn more about Molson Coors Brewing Company, visit molsoncoors.com, ourbeerprint.com or on Twitter through @MolsonCoors.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “aims,” “believe,” “expect,” “intend,” “anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Forward-looking statements include those relating to benefits to be paid by Athene, the expected reduction to the Company’s pension projected benefit obligation, and the expected impact of the transaction on the size of the Plan, future cost volatility, and administrative expenses. Although Molson Coors believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from Molson Coors’ projections and expectations are disclosed in Molson Coors’ filings with the SEC. These factors include, among others, health of the beer industry and our brands in our markets; economic conditions in our markets; stock market and commodities performance; consumer demand; global economic conditions; changes in laws and regulations; development of new technology; costs of resources and raw materials; force majeure events; changes in our supply chain system; success of our joint ventures; future financial and operating performance within and related to the industry; and other risks discussed in our filings with the SEC . All forward-looking statements in this Press Release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Molson Coors

Molson Coors Brewing Company

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