Constellation Brands Prices Offering of Senior Notes

Rhea-AI Summary

Constellation Brands (NYSE: STZ) priced a public offering of $500.0 million aggregate principal amount of 4.950% Senior Notes due 2035 at a public offering price of 99.716% of principal. The notes will rank equally with Constellation’s other senior unsecured debt.

Closing is expected on October 17, 2025, subject to customary conditions. Net proceeds are intended for general corporate purposes, including the redemption of $500 million aggregate principal amount of existing 4.400% Senior Notes due 2025. BofA Securities, BBVA Securities, J.P. Morgan Securities and Wells Fargo Securities are joint book‑running managers.

Positive

• Issues $500.0M 4.950% notes maturing 2035
• Proceeds intended to redeem $500M 4.400% notes due 2025
• Closing expected on Oct 17, 2025

Negative

• Coupon 4.950% is 55 bps higher than the 4.400% notes being redeemed
• Notes priced below par at 99.716% (≈0.284% discount)

Insights

Debt Capital Markets Analyst

Constellation priced a $500,000,000 4.950% senior note due 2035, intending to redeem $500,000,000 of 2025 notes.

Funding comes from a public offering of senior unsecured notes priced at 99.716% of par. The company will use net proceeds for general corporate purposes and to redeem all outstanding 4.400% notes due 2025, matching principal amounts.

The action lengthens maturity from 2025 to 2035 and locks in fixed-rate funding at 4.950%. This raises interest cost versus the redeemed 4.400% paper but reduces near-term refinancing need.

Key dependencies and risks include successful closing on October 17, 2025 and market settlement conditions. Investors should note the notes remain senior unsecured, ranking equally with existing senior debt, which preserves the company’s current capital structure seniority.

Watch the closing on October 17, 2025, reported net proceeds and any subsequent disclosures on maturity schedule and interest expense. Over the medium term, monitor consolidated interest expense and liquidity trends for potential effects on free cash flow.

ROCHESTER, N.Y., Oct. 15, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it priced the public offering of $500.0 million aggregate principal amount of 4.950% Senior Notes due 2035 (the "notes") for a public offering price of 99.716% of the principal amount of the notes. The notes will be senior obligations that rank equally with all of Constellation’s other senior unsecured indebtedness.

Closing of the offering is expected to occur on October 17, 2025, subject to the satisfaction of customary closing conditions. Constellation intends to use the net proceeds from the offering for general corporate purposes, including to redeem all of its outstanding 4.400% Senior Notes due 2025 in the aggregate principal amount of $500 million.

BofA Securities, Inc., BBVA Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC are acting as the joint book-running managers of the offering. The notes are being offered only by means of a prospectus, including a prospectus supplement, copies of which may be obtained by contacting BofA Securities, Inc. toll-free at (800) 294-1322 or emailing dg.prospectus_requests@bofa.com, contacting BBVA Securities Inc. toll-free at (800) 422-8692, contacting J.P. Morgan Securities LLC collect at (212) 834-4533, or contacting Wells Fargo Securities, LLC toll-free at (800) 645-3751. Alternatively, the prospectus and prospectus supplement may be obtained by visiting EDGAR on the SEC website at https://www.sec.gov.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy notes. The notes will not be offered or sold in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

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, Casa Noble 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 are forward-looking statements that are based upon management’s current expectations and are subject to risks and uncertainties. The forward-looking statements are based on management's current expectations and should not be construed in any manner as a guarantee that such events or results will in fact occur. All forward-looking statements speak only as of the date of this news release and Constellation Brands 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
Amy Martin 585-678-7141 /amy.martin@cbrands.com Carissa Guzski 315-525-7362 /carissa.guzski@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

A downloadable PDF copy of this news release can be found here: http://ml.globenewswire.com/Resource/Download/1b7a84fb-efc9-4154-bf90-68205ea5187e

FAQ

What did Constellation Brands (STZ) announce on October 15, 2025 about new debt?

Constellation priced $500.0M of 4.950% Senior Notes due 2035 at 99.716% of principal.

How will the STZ offering affect the company's 2025 debt maturity?

Net proceeds are intended to redeem $500M of 4.400% Senior Notes due 2025, replacing that maturity with 2035 notes.

When is the Constellation Brands (STZ) notes offering expected to close?

Closing is expected on October 17, 2025, subject to customary closing conditions.

What interest rate will Constellation Brands (STZ) pay on the new notes due 2035?

The new notes carry a fixed interest rate of 4.950%.

Who are the joint book‑running managers for the STZ notes offering?

BofA Securities, BBVA Securities, J.P. Morgan Securities and Wells Fargo Securities are joint book‑running managers.