Constellation Brands Prices Offering of Senior Notes

Rhea-AI Summary

Constellation Brands has successfully priced a public offering of $500.0 million in Senior Notes, due 2030, with a 4.800% interest rate. The notes, priced at 99.824% of principal value, will rank equally with the company's other senior unsecured debt.

The offering is expected to close on May 1, 2025. The beverage alcohol company plans to use the proceeds for general corporate purposes, including debt repayment, working capital, and capital expenditures. Leading financial institutions including BofA Securities, BNP Paribas Securities, Goldman Sachs, and J.P. Morgan Securities are serving as joint book-running managers.

Interested investors can obtain the prospectus through the managing banks or the SEC website. The offering is subject to customary closing conditions and regulatory compliance.

Positive

• Successfully priced $500M senior notes offering at 4.800% due 2030
• Strong banking relationships with major institutions (BofA, BNP Paribas, Goldman Sachs, JP Morgan)
• Notes will rank equally with other senior unsecured debt, indicating good credit standing

Negative

• Additional debt burden through new notes issuance
• Proceeds partly used to repay existing debt, suggesting refinancing needs
• Slight discount on notes pricing at 99.824% of principal amount

Insights

Financial Strategist

Constellation's $500M debt offering represents standard capital management, extending debt profile while maintaining financial flexibility.

Constellation Brands has priced a $500 million senior notes offering with a 4.800% interest rate maturing in 2030. The notes, priced at 99.824% of principal, will rank equally with the company's existing senior unsecured debt obligations.

This debt issuance represents a typical corporate financing maneuver with three primary purposes:

• Refinancing existing commercial paper
• Supporting working capital needs
• Funding capital expenditures and business opportunities

By replacing short-term commercial paper with these 5-year notes, Constellation is extending its debt maturity profile, potentially reducing near-term refinancing pressure. This liability management approach suggests a deliberate balancing of the company's debt structure.

The 4.800% coupon rate provides insight into the market's current assessment of Constellation's credit quality. The participation of major financial institutions (BofA Securities, BNP Paribas, Goldman Sachs, and J.P. Morgan) as joint book-running managers signals strong institutional support for the offering.

This transaction demonstrates Constellation's continued ability to access debt markets to support its operational and strategic initiatives. The offering is expected to close on May 1, 2025, subject to customary conditions.

ROCHESTER, N.Y., April 29, 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 4.800% Senior Notes due 2030 (the "notes") for a public offering price of 99.824% 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 1, 2025, subject to the satisfaction of customary closing conditions. Constellation intends to use the net proceeds from the offering for general corporate purposes, including repayment of commercial paper and other indebtedness, working capital, funding capital expenditures, and other business opportunities.

BofA Securities, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, and J.P. Morgan 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, BNP Paribas Securities Corp. toll-free at (800) 854-5674, contacting Goldman Sachs & Co. LLC toll-free at (866) 471-2526 or emailing prospectus-ny@ny.email.gs.com, or contacting J.P. Morgan Securities LLC collect at (212) 834-4533. 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, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West Whiskey, Casa Noble Tequila, and Mi CAMPO Tequila.

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	Joseph Suarez	773-551-4397	joseph.suarez@cbrands.com
Carissa Guzski	315-525-7362	carissa.guzski@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/a719b7ce-2e86-455c-bfc2-90b330568c22

FAQ

What is the interest rate and maturity date for Constellation Brands' (STZ) new senior notes?

Constellation Brands (STZ) is offering senior notes with a 4.800% interest rate, maturing in 2030. The notes are priced at 99.824% of the principal amount.

How much money is Constellation Brands (STZ) raising through its 2025 senior notes offering?

Constellation Brands is raising $500.0 million through its senior notes offering, which is expected to close on May 1, 2025.

What will Constellation Brands (STZ) use the proceeds from its 2025 notes offering for?

The proceeds will be used for general corporate purposes, including repaying commercial paper and other debt, working capital, funding capital expenditures, and other business opportunities.

Which banks are managing Constellation Brands' (STZ) 2025 senior notes offering?

The joint book-running managers are BofA Securities, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC.

How do Constellation Brands' (STZ) new senior notes rank in terms of priority?

The notes will be senior obligations that rank equally with all of Constellation's other senior unsecured indebtedness.