Constellation Brands Prices Offering of Senior Notes

Constellation Brands (NYSE: STZ) priced a public offering of $500.0 million aggregate principal amount of 4.850% Senior Notes due 2031 at a public offering price of 99.943%.

Rhea-AI Summary

Constellation Brands (NYSE: STZ) priced a public offering of $500.0 million aggregate principal amount of 4.850% Senior Notes due 2031 at a public offering price of 99.943%. Closing is expected May 6, 2026. Net proceeds, plus commercial paper or cash, will redeem $600 million of 3.700% Senior Notes due 2026 and be used for general corporate purposes.

Positive

• Issued $500.0 million 4.850% notes maturing 2031 to extend debt maturity
• Plans to redeem $600 million of 3.700% notes due 2026, addressing near-term maturities

Negative

• Coupon rises from 3.700% to 4.850% for replacement debt, increasing interest costs
• Offering $500.0 million is smaller than the $600 million redemption, requiring commercial paper or cash

Argus May 5 session

+1.12% close to close 0.7x rel. volume Open Argus

Details

News Market Reaction – STZ

On May 5, the first trading day after this news, STZ closed 1.12% above the previous close.

Data tracked by StockTitan Argus for the May 5 session.

Key Figures

New Senior Notes Size: $500.0 million Coupon Rate: 4.850% Offer Price: 99.943% +5 more

New Senior Notes Size

$500.0 million

Aggregate principal amount of 4.850% Senior Notes due 2031

Coupon Rate

4.850%

Interest rate on new Senior Notes due 2031

Offer Price

99.943%

Public offering price as % of principal amount

Notes To Be Redeemed

$600 million

3.700% Senior Notes due 2026 to be redeemed before maturity

Legacy Coupon

3.700%

Coupon on Senior Notes due 2026 targeted for redemption

Closing Date Expectation

May 6, 2026

Expected closing date for the new senior notes offering

Change-of-Control Price

101%

Repurchase price plus accrued interest under 424B3 indenture terms

Net Proceeds to Underwriters

5%

At least 5% of net proceeds to underwriters/affiliates (FINRA Rule 5121 trigger)

Previous Offering Reports

2 past events · Latest: Oct 15

Same Type 2 events

1. Oct 15

   Debt offering

   24h Move

   +0.3%

   Pricing of $500M 4.950% Senior Notes due 2035 for debt redemption.

2. Apr 29

   Debt offering

   24h Move

   +0.7%

   Pricing of $500M 4.800% Senior Notes due 2030 for general purposes.

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

Key Terms

senior notes, commercial paper, joint book-running managers, prospectus supplement, +1 more

5 terms

senior notes financial

"priced the public offering of $500.0 million aggregate principal amount of 4.850% Senior Notes due 2031"

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.

commercial paper financial

"use the net proceeds from the offering, together with commercial paper borrowings and/or cash on hand"

Short-term IOUs issued by companies to raise cash quickly, sold to investors for a fixed, brief period (usually up to a few months) and repaid with interest at maturity. Think of it as a business borrowing from the public without putting up collateral, like a friend asking to borrow money for a few weeks with a promise to pay back a bit more. Investors watch commercial paper to gauge a company’s short-term funding health and credit risk; difficulty issuing it or rising yields can signal liquidity stress or higher perceived risk.

joint book-running managers financial

"BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, and Truist Securities, Inc. are acting as the joint book-running managers"

Joint book-running managers are the lead banks or financial firms responsible for organizing and overseeing the sale of a large financial offering, such as a company’s stock or bonds. They coordinate efforts to set the price, attract investors, and ensure the offering is successful. Their role is important to investors because they help ensure the offering is well-managed, properly priced, and accessible to a wide range of buyers.

prospectus supplement regulatory

"The notes are being offered only by means of a prospectus, including a prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

EDGAR regulatory

"the prospectus and prospectus supplement may be obtained by visiting EDGAR on the SEC website"

EDGAR is a system used by companies to share important financial and business information with the public. It functions like an online filing cabinet where investors can access official reports and documents that help them understand a company's financial health and operations. This transparency allows investors to make more informed decisions, much like checking a company's report card before investing.

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

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ROCHESTER, N.Y., May 04, 2026 (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 4.850% Senior Notes due 2031 (the "notes") for a public offering price of 99.943% 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 May 6, 2026, subject to the satisfaction of customary closing conditions. Constellation intends to use the net proceeds from the offering, together with commercial paper borrowings and/or cash on hand, to redeem prior to maturity all of our outstanding 3.700% Senior Notes due 2026 in the aggregate principal amount of $600 million and for general corporate purposes.

BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, and Truist Securities, Inc. 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 Goldman Sachs & Co. LLC collect at (212) 902-1000, contacting PNC Capital Markets LLC toll-free at (855) 881-0697, or contacting Truist Securities, Inc. toll-free at (800) 685-4786. 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, 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 related to the settlement date of the offering and the anticipated use of proceeds, 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

A downloadable PDF copy of this news release can be found here. http://ml.globenewswire.com/Resource/Download/f427d04f-91eb-4e0b-abe6-86ab455f9f67

FAQ

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

What did Constellation Brands (STZ) announce about the May 2026 senior notes offering?

They priced $500.0 million of 4.850% Senior Notes due 2031 at 99.943% of par. According to the company, closing is expected on May 6, 2026, subject to customary closing conditions, with proceeds to help redeem 2026 notes and for general corporate purposes.

How will the STZ offering affect the company's upcoming 2026 debt maturity?

Constellation intends to redeem $600 million of 3.700% Senior Notes due 2026 using offering proceeds plus cash or commercial paper. According to the company, the action targets elimination of that near-term maturity ahead of its May 6, 2026 closing.

What are the key financial terms of Constellation Brands' new 2031 notes (STZ)?

The new notes carry a 4.850% coupon and mature in 2031, priced at 99.943% of principal. According to the company, they will be senior unsecured obligations ranking equally with existing senior debt.

Does the STZ offering create immediate dilution or equity issuance for shareholders?

No—this is a debt offering, not an equity issuance, so it does not dilute shareholders. According to the company, proceeds will be used to redeem existing debt and for general corporate purposes, not for issuing new shares.

Who are the managers and where can investors obtain the STZ prospectus?

BofA Securities, Goldman Sachs, PNC Capital Markets, and Truist Securities act as joint book-running managers. According to the company, the prospectus and supplement are available from those banks or on the SEC EDGAR website.