Constellation Brands Announces Delivery of Notice of Redemption for 3.700% Senior Notes due 2026

Constellation Brands (NYSE: STZ) announced notice of full redemption prior to maturity of all outstanding 3.700% Senior Notes due 2026 (CUSIP 21036PAQ1).

Rhea-AI Summary

Constellation Brands (NYSE: STZ) announced notice of full redemption prior to maturity of all outstanding 3.700% Senior Notes due 2026 (CUSIP 21036PAQ1). As of May 6, 2026, $600.0 million aggregate principal amount remained outstanding. The redemption is to be effected on May 18, 2026, and the redemption price will be calculated pursuant to the supplemental indenture formula; payment will be made in cash. The press release clarifies this communication does not itself constitute the trustee's notice of redemption.

Positive

• Full redemption announced for $600.0 million 3.700% senior notes due 2026
• Redemption scheduled to be effected on May 18, 2026

Negative

• Redemption requires cash payment, creating a near-term cash outflow
• Redemption price determined by supplemental indenture formula (amount not disclosed)

Argus May 7 session

-1.34% close to close Open Argus

Details

News Market Reaction – STZ

On May 7, the first trading day after this news, STZ closed 1.34% below the previous close.

Data tracked by StockTitan Argus for the May 7 session.

Market Context

This announcement details a full redemption of $600 million 3.700% Senior Notes due 2026, scheduled ...

Analysis

This announcement details a full redemption of $600 million 3.700% Senior Notes due 2026, scheduled for May 18, 2026. Recent 8-K and 424B2 filings show STZ issuing $500 million of 4.850% Senior Notes due 2031, with net proceeds of about $496.6 million intended principally to fund this redemption. Together with its effective S-3ASR shelf, the company has actively managed maturities via capital markets, making future debt issuance terms and leverage metrics key items to watch.

Key Figures

3.700% Notes Outstanding: $600.0 million Coupon Rate (Redeemed Notes): 3.700% Redemption Date: May 18, 2026 +5 more

3.700% Notes Outstanding

$600.0 million

Aggregate principal of 3.700% Senior Notes due 2026 as of May 6, 2026

Coupon Rate (Redeemed Notes)

3.700%

Senior Notes due 2026 subject to redemption notice

Redemption Date

May 18, 2026

Scheduled full redemption of 3.700% Senior Notes due 2026

New Notes Offering

$500.0 million

4.850% Senior Notes due 2031 from 8-K underwriting agreement

Coupon Rate (New Notes)

4.850%

Senior Notes due May 6, 2031 per 8-K and 424B2

Public Offering Price

99.943%

Price of 4.850% Senior Notes due 2031 as percent of principal

Estimated Net Proceeds

$496.6 million

Estimated net proceeds from 4.850% Senior Notes due 2031 offering

Change-of-Control Price

101%

Change-of-control repurchase right for new 2031 notes plus accrued interest

Historical Context

5 past events · Latest: Apr 08

5 events

1. Apr 08

   Earnings results

   24h Move

   +8.5%

   Full fiscal year and Q4 2026 earnings release and investor call details.

2. Mar 19

   Earnings date set

   24h Move

   -1.5%

   Announcement of reporting date and call schedule for FY and Q4 2026.

3. Feb 12

   CEO succession

   24h Move

   -8.0%

   Appointment of Nicholas Fink as President and CEO effective April 13, 2026.

4. Jan 07

   Earnings results

   24h Move

   +5.3%

   Third quarter fiscal 2026 results and related webcast announcement.

5. Dec 04

   Earnings date set

   24h Move

   +3.1%

   Scheduling and access details for upcoming Q3 2026 earnings release and call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior notes, cusip, supplemental indenture, indenture, +2 more

6 terms

senior notes financial

"all of its outstanding 3.700% Senior Notes due 2026 (CUSIP Number:"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

cusip financial

"3.700% Senior Notes due 2026 (CUSIP Number: 21036PAQ1) to be effected"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

View in glossary

supplemental indenture financial

"formula set forth in the supplemental indenture relating to the notes."

A supplemental indenture is a written amendment to the original bond agreement that changes specific terms of a debt contract, such as payment schedules, interest rates, collateral or covenant protections. Investors care because it alters the legal rights and risks tied to a security — like renegotiating a mortgage where the lender and borrower agree to new rules — and can affect a bond’s credit quality, yield and market value.

indenture financial

"by the trustee under the indenture and the applicable supplemental"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

trustee financial

"notice distributed to holders of the notes by the trustee under"

A trustee is a person or institution legally appointed to hold and manage assets or enforce an agreement on behalf of other people (beneficiaries). Think of a trustee as a neutral referee or custodian who must act in the beneficiaries’ best interests, follow the trust or contract rules, and handle distributions, recordkeeping and enforcement. Investors care because a trustworthy trustee protects their rights, ensures promised payments or remedies are delivered, and can influence recoveries if things go wrong.

notice of redemption financial

"This press release shall not constitute a notice of redemption of"

A notice of redemption is a formal announcement from a bond or preferred-stock issuer that it will repay and retire those securities on a specified date and at a specified price, telling holders which issues will be called and when. It matters to investors because it changes the timing and amount of expected cash flows—like a store buying back a gift card early, you get your money sooner but may lose future income and must find a new place to reinvest.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ROCHESTER, N.Y., May 06, 2026 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE: STZ), a leading beverage alcohol company, announced today that it has given notice for full redemption prior to maturity of all of its outstanding 3.700% Senior Notes due 2026 (CUSIP Number: 21036PAQ1) to be effected on May 18, 2026. As of May 6, 2026, there were $600.0 million in aggregate principal amount of the notes outstanding.

The redemption price for the notes, payable in cash, will be calculated pursuant to the formula set forth in the supplemental indenture relating to the notes.

This press release shall not constitute a notice of redemption of the notes. Information concerning the terms and conditions of the redemption of the notes is described in the notice distributed to holders of the notes by the trustee under the indenture and the applicable supplemental indenture governing the notes.

ABOUT CONSTELLATION BRANDS
Constellation Brands is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Constellation’s brand portfolio includes Modelo Especial, Corona Extra, Modelo Cheladas, Pacifico, Victoria, The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, Lingua Franca, Mi CAMPO Tequila, and High West Whiskey.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements which are not historical facts and relate to future plans, events, or performance, including statements regarding the redemption date and price, are forward-looking statements that are based upon management’s current expectations and are subject to risks and uncertainties. The forward-looking statements should not be construed in any manner as a guarantee that such events or results will in fact occur or will occur on the timetable contemplated hereby. All forward-looking statements speak only as of the date of this news release and Constellation undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Detailed information regarding risk factors with respect to the company and the offering are included in the company’s filings with the SEC, including the prospectus and prospectus supplement for the offering.

MEDIA CONTACTS	INVESTOR RELATIONS CONTACTS
Maggie Bowman 213-500-2401 / maggie.bowman@cbrands.com	Blair Veenema 585-284-4433 / blair.veenema@cbrands.com Snehal Shah 847-385-4940 / snehal.shah@cbrands.com David Paccapaniccia 585-282-7227 / david.paccapaniccia@cbrands.com

PDF available: http://ml.globenewswire.com/Resource/Download/eebf28ef-7e1d-4a8a-9528-8eb4d653404d

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Constellation Brands (STZ) announce about its 3.700% senior notes due 2026?

They announced notice of full redemption of all outstanding 3.700% senior notes due 2026. According to the company, $600.0 million remained outstanding as of May 6, 2026, and redemption is to be effected May 18, 2026 with cash payment.

When will STZ's redemption of the 3.700% senior notes due 2026 take effect?

The redemption will be effected on May 18, 2026. According to the company, the trustee will distribute the formal notice and the redemption price will be calculated under the supplemental indenture formula.

How much principal amount of the 3.700% senior notes is Constellation Brands redeeming?

Constellation Brands is redeeming $600.0 million in aggregate principal amount of the notes. According to the company, that was the outstanding balance reported as of May 6, 2026.

How will Constellation Brands (STZ) pay for the redemption of the 2026 notes?

The redemption will be payable in cash. According to the company, the specific redemption price will be calculated pursuant to the formula in the supplemental indenture governing the notes.

Where can STZ noteholders find terms and conditions for the May 18, 2026 redemption?

Terms and conditions are described in the trustee's notice and the supplemental indenture. According to the company, holders should consult the notice distributed by the trustee under the indenture for full details.