Constellation Brands Announces Significant Senior Notes Offering
Constellation Brands' Senior Notes Pricing Announcement
ROCHESTER, N.Y. — Constellation Brands, Inc. (NYSE: STZ), a recognized leader in the beverage alcohol sector, recently announced the pricing of a public offering of senior notes totaling $500 million. This offering, featuring a rate of 4.950% with a scheduled maturity in 2035, underscores the company's commitment to financial robustness.
Details of the Offering
The senior notes are priced at 99.716% of their principal amount. These notes fall into the category of senior unsecured obligations, which means they hold a secure position in the company's finances, ranking equally with other senior debts.
Utilization of Proceeds
Constellation Brands intends to utilize the net proceeds from this offering for general corporate purposes. This includes a focus on redeeming its existing 4.400% Senior Notes that are due in 2025, with a total amount of $500 million slated for redemption.
Closing Timeline and Conditions
The anticipated closure of this offering is on October 17, 2025, contingent upon the fulfillment of customary closing conditions, thereby ensuring a seamless transaction process.
Management and Handling of the Offering
The role of managing this offering is being handled by a reputable team, including BofA Securities, Inc., BBVA Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC. They are tasked with overseeing the logistics and execution of the offering, ensuring that all elements meet the necessary regulatory requirements.
How to Obtain the Prospectus
Prospective investors or interested parties can request copies of the prospectus, which also includes a prospectus supplement. Requests can be made directly to BofA Securities, Inc. via a toll-free call or by emailing for further information. Alternatively, the prospectus is available through the SEC’s EDGAR database.
Understanding the Risks
It is essential to highlight that this announcement does not serve as an invitation to invest; rather, it acts as a formal notice regarding the offering. Additionally, the notes will not be sold in jurisdictions where such offers would not comply with local laws.
About Constellation Brands
Constellation Brands is widely recognized not just for its impressive portfolio of brands, which includes popular products like Modelo Especial and Corona Extra, but also for its expansive operations across key markets including the U.S., Mexico, New Zealand, and Italy. This diverse portfolio caters to a broad audience, contributing to the company's robust market presence.
Frequently Asked Questions
What are the key details about the recent offering of senior notes?
The offering consists of $500 million of 4.950% Senior Notes due in 2035, priced at 99.716% of the principal amount.
When is the expected closing date of the offering?
The offering is anticipated to close on October 17, 2025, subject to the fulfillment of customary conditions.
How will Constellation Brands use the proceeds from this offering?
The proceeds will be utilized for general corporate purposes, including the redemption of existing Senior Notes due in 2025.
Who are the joint book-running managers for this public offering?
The offering is managed by BofA Securities, Inc., BBVA Securities Inc., J.P. Morgan, and Wells Fargo Securities, LLC.
What brands does Constellation Brands own?
Constellation Brands’ portfolio includes renowned names like Modelo Especial, Corona Extra, and Robert Mondavi Winery, among others.
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