Constellation Brands Prices $500M Senior Notes at 4.850%

By Greg Peters • Monday, May 04 19:08 • Permanent Link

Constellation Brands priced a $500 million senior notes offering at 99.943% of principal, locking in a 4.850% coupon on debt due in 2031.

The company said the notes are expected to close on May 6, 2026. Proceeds, together with commercial paper borrowings and/or cash on hand, will be used to redeem all $600 million of its 3.700% senior notes due 2026 before maturity and for general corporate purposes.

The new issue replaces debt that carries a lower 3.700% rate with a larger $500 million refinancing package, while also leaving room for broader corporate uses. The notes will rank equally with Constellation’s other senior unsecured debt.

BofA Securities, Goldman Sachs & Co. LLC, PNC Capital Markets LLC and Truist Securities are serving as joint book-running managers. The market has reacted to these announcements by moving the company's shares -3.06% to a price of $148.14. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.