Constellation Brands Announces Delivery of Notices of Redemption for 4.75% Senior Notes Due 2025 and 5.00% Senior Notes Due 2026

Rhea-AI Summary

Constellation Brands (NYSE: STZ) has announced plans to fully redeem its outstanding senior notes ahead of maturity. The redemption includes $900.0 million in aggregate principal amount of 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026. The 2025 notes will be redeemed on July 2, 2025, while the 2026 notes will be redeemed on June 12, 2025. The redemption price will be paid in cash and calculated according to the formula outlined in the supplemental indentures. This strategic debt management move demonstrates the company's proactive approach to managing its financial obligations.

Positive

• Early redemption of $900 million in senior notes indicates strong cash position and financial flexibility
• Potential reduction in future interest expenses by retiring higher-interest debt
• Proactive debt management strategy shows strong financial planning

Negative

• Early redemption may require significant cash outlay
• Company will need to pay redemption premium above face value of the notes

ROCHESTER, N.Y., June 02, 2025 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE: STZ), a leading beverage alcohol company, announced today that it has given notice for full redemption prior to maturity of all of its outstanding 4.75% Senior Notes due 2025 (CUSIP Number: 21036PAP3) and 5.00% Senior Notes due 2026 (CUSIP Number: 21036PBN7) (collectively, the ”notes”) to be effected on July 2, 2025 and June 12, 2025, respectively. As of June 2, 2025, there were $900.0 million in aggregate principal amount of the notes outstanding.

The redemption price for the notes, payable in cash, will be calculated pursuant to the formula set forth in the supplemental indentures relating to the notes.

This press release shall not constitute a notice of redemption of the notes. Information concerning the terms and conditions of the redemption of the notes is described in the notices distributed to holders of the notes by the trustee under the indenture and the applicable supplemental indentures governing the notes.

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 Corona Extra, Modelo Especial, Modelo Chelada, Pacifico, Victoria, The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, Lingua Franca, Casa Noble Tequila, and High West Whiskey.

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 are included in the company’s filings with the SEC.

MEDIA CONTACTS	INVESTOR RELATIONS CONTACTS
Amy Martin 585-678-7141 / amy.martin@cbrands.com  Carissa Guzski 315-525-7362 / carissa.guzski@cbrands.com	Joseph Suarez 773-551-4397 / joseph.suarez@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.

FAQ

What is the total value of senior notes being redeemed by Constellation Brands (STZ)?

Constellation Brands is redeeming $900.0 million in aggregate principal amount of outstanding senior notes.

When will Constellation Brands (STZ) redeem its 4.75% Senior Notes and 5.00% Senior Notes?

The 4.75% Senior Notes due 2025 will be redeemed on July 2, 2025, and the 5.00% Senior Notes due 2026 will be redeemed on June 12, 2025.

What are the interest rates on the Constellation Brands notes being redeemed?

The notes being redeemed have interest rates of 4.75% for the 2025 notes and 5.00% for the 2026 notes.

How will Constellation Brands (STZ) calculate the redemption price for the notes?

The redemption price will be calculated according to the formula set forth in the supplemental indentures relating to the notes and will be paid in cash.

What are the CUSIP numbers for Constellation Brands' notes being redeemed?

The CUSIP numbers are 21036PAP3 for the 4.75% Senior Notes due 2025 and 21036PBN7 for the 5.00% Senior Notes due 2026.