Constellation Brands Prices Offering of Senior Notes

Rhea-AI Summary

Constellation Brands announced a public offering of $1 billion in 2.250% Senior Notes due 2031, priced at 99.555% of the principal amount. The offering is expected to close on July 26, 2021. Proceeds will be utilized to redeem existing 2.700% Senior Notes due 2022 totaling $500 million, along with general corporate purposes, potentially including the repayment of near-term debt. BofA Securities, Goldman Sachs, and J.P. Morgan are leading the offering.

Positive

• Issuance of $1 billion senior notes enhances liquidity.
• Proceeds aimed at redeeming higher-interest debt, reducing interest expenses.

Negative

• Potential dilution of existing shareholders due to increased debt obligations.

VICTOR, N.Y., July 21, 2021 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that it priced the public offering of $1.0 billion of 2.250% Senior Notes due 2031 (the “notes”) for a public offering price of 99.555% of the principal amount of the notes. The notes will be senior obligations that rank equally with all of Constellation’s other senior unsecured indebtedness.

Closing of the offering is expected to occur on July 26, 2021. Constellation intends to use the net proceeds from the offering to redeem prior to maturity its outstanding 2.700% senior notes due 2022 in the aggregate principal amount of $500.0 million and for general corporate purposes, which may include the repayment of near-term debt maturities.

BofA Securities, Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC are acting as the joint book-running managers of the offering. The notes are being offered only by means of a prospectus, including a prospectus supplement, copies of which may be obtained by contacting BofA Securities, Inc. toll-free at (800) 294-1322 or emailing dg.prospectus_requests@bofa.com, contacting Goldman Sachs & Co. LLC toll-free at (866) 471-2526 or emailing prospectus-ny@ny.email.gs.com, or contacting J.P. Morgan Securities LLC collect at (212) 834-4533. Alternatively, the prospectus and prospectus supplement may be obtained by visiting EDGAR on the SEC website at http://www.sec.gov.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy notes. The notes will not be offered or sold in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

ABOUT CONSTELLATION BRANDS
Constellation Brands is a leading 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, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, Pacifico, the Robert Mondavi brand family, Kim Crawford, Meiomi, The Prisoner brand family, SVEDKA Vodka, 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 and the offering are included in the company’s filings with the SEC, including the prospectus and prospectus supplement for the offering.

MEDIA CONTACTS	INVESTOR RELATIONS CONTACTS
Mike McGrew 773-251-4934 / michael.mcgrew@cbrands.com Amy Martin 585-678-7141 / amy.martin@cbrands.com	Patty Yahn-Urlaub 585-678-7483 / patty.yahn-urlaub@cbrands.com Marisa Pepelea 312-741-2316 / marisa.pepelea@cbrands.com

A downloadable PDF copy of this news release can be found here: http://ml.globenewswire.com/Resource/Download/14c20fb3-1708-4379-a427-3c1d4500acc5 

FAQ

What are the details of Constellation Brands' public offering of senior notes?

Constellation Brands priced a public offering of $1 billion in 2.250% Senior Notes due 2031, at 99.555% of the principal amount.

When is the expected closing date for the offering of senior notes by Constellation Brands?

The expected closing date for the offering is July 26, 2021.

How will Constellation Brands use the proceeds from the senior notes offering?

The net proceeds will be used to redeem existing 2.700% senior notes due 2022 and for general corporate purposes.

What is the impact of the new senior notes on Constellation Brands' debt structure?

The issuance will increase Constellation Brands' debt, but will also allow for the redemption of higher-interest debt, potentially lowering overall interest expenses.

Who are the managers involved in the public offering of Constellation Brands' senior notes?

BofA Securities, Goldman Sachs, and J.P. Morgan are acting as joint book-running managers for the offering.