Constellation Brands Set to Redeem Senior Notes Before Maturity

Author: Caleb Price Updated: 06-02-2025 04:45 PM

Constellation Brands Plans Redemption of Senior Notes

Constellation Brands (NYSE: STZ), a prominent leader in the beverage alcohol industry, has announced its intention to redeem its 4.75% Senior Notes due in 2025 and 5.00% Senior Notes due in 2026. This strategic move signifies the company's ongoing commitment to managing its debt and enhancing its financial position.

Details of the Redemption

The company issued notifications for the full redemption of these notes, which is set to take effect on July 2, 2025, for the 4.75% notes and on June 12, 2025, for the 5.00% notes. At this time, there is an outstanding aggregate principal amount of $900.0 million pertaining to these notes.

Redemption Pricing Mechanism

The redemption price will be calculated based on guidelines detailed in the supplemental indentures concerning the notes. This step shows Constellation Brands' proactive measures in handling its financial obligations and optimizing its capital structure.

About Constellation Brands

Constellation Brands is well-known as an international producer and marketer dedicated to high-quality beer, wine, and spirits. Its diverse portfolio includes popular brands such as Corona Extra, Modelo Especial, and more, catering to a global audience with products enjoyed across various cultures. With operational hubs in regions including the U.S., Mexico, New Zealand, and Italy, Constellation continues to innovate and expand its market share.

Focus on Growth and Investment

The strategic choice to redeem these senior notes is part of Constellation's broader growth strategy, ensuring that the company remains agile in the marketplace. By reducing long-term debt through such moves, Constellation aims to strengthen its financial foundation, paving the way for further investment in key brands and expansion initiatives.

Investor Relations and Media Contacts

For stakeholders interested in learning more about these developments, Constellation Brands has made its media and investor relations contacts available to facilitate communication. This openness demonstrates the company’s dedication to maintaining transparency with its investors and the public.

Continued Commitment to Excellence

Constellation Brands holds its reputation for producing outstanding beverages in high regard, consistently working towards building a better brand experience. The planned redemption of notes underscores the company’s focus on maintaining excellence and financial prudence.

Frequently Asked Questions

What are the details of the notes being redeemed?

Constellation Brands is redeeming its 4.75% Senior Notes due in 2025 and 5.00% Senior Notes due in 2026.

Why is Constellation Brands opting for this redemption?

The redemption reflects Constellation's strategy to manage its debt and strengthen its financial performance.

When will the redemption take place?

The redemption is scheduled for July 2, 2025, for the 4.75% notes and June 12, 2025, for the 5.00% notes.

How much principal is outstanding on these notes?

There is a total of $900.0 million in aggregate principal amount of these notes outstanding.

How can investors reach the company for more information?

Investors can contact Constellation Brands' media or investor relations team for more details about the redemption and other inquiries.

About The Author

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