Constellation Brands, Inc. announced today that it has priced a $500 million aggregate principal amount of 4.950% Senior Notes due 2035, offering the notes at 99.716% of the principal amount. The notes carry a fixed coupon of 4.950% and will mature in 2035, providing the company with a long‑term, low‑cost financing option. The pricing reflects the market’s appetite for the company’s debt and sets the stage for a closing expected on October 17, 2025.
The net proceeds from the offering will be used to redeem all of Constellation’s outstanding 4.400% Senior Notes due 2025, which also total $500 million. By extinguishing the shorter‑dated debt, the company will reduce its interest expense and extend its debt maturity profile. The offering is being managed by BofA Securities, BBVA Securities, J.P. Morgan Securities, and Wells Fargo Securities as joint book‑running managers.
This financing move is significant for investors because it improves the company’s balance sheet by replacing higher‑rate, near‑term debt with lower‑rate, long‑term debt. The transaction also provides flexibility for future capital allocation, whether for organic growth, acquisitions, or shareholder returns. Overall, the new notes issuance represents a material change in Constellation’s capital structure and financial strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.