Constellation Brands Prices $500 Million Public Offering of Senior Notes Due 2030

Constellation Brands announced a $500 million public offering of senior notes due 2030, intending to use proceeds for corporate purposes.

Quiver AI Summary

Constellation Brands, Inc. announced the pricing of a public offering of $500 million in 4.800% Senior Notes due 2030, with a public offering price of 99.824% of the principal amount. The notes will rank equally with Constellation's other senior unsecured debt and are expected to close on May 1, 2025, subject to customary conditions. The company plans to use the proceeds for various corporate purposes, including repaying existing debt, funding working capital, and capital expenditures. The offering is managed by BofA Securities, BNP Paribas, Goldman Sachs, and J.P. Morgan. This announcement contains forward-looking statements and does not constitute an offer to sell or solicit offers to buy the notes in jurisdictions where such offers would be unlawful.

Potential Positives

Constellation Brands successfully priced a public offering of $500 million in Senior Notes, which highlights strong investor interest and confidence in the company's financial stability.
The offering of 4.800% Senior Notes due 2030 will enhance liquidity, allowing the company to manage its debt obligations effectively and fund general corporate purposes.
The engagement of multiple prestigious financial institutions as joint book-running managers indicates the company's reputable standing in the capital markets.

Potential Negatives

Issuing $500 million in Senior Notes indicates an increase in the company's debt, which may raise concerns about financial leverage and future repayment obligations.
The use of the proceeds to repay existing commercial paper and other indebtedness may suggest ongoing financial pressure and reliance on borrowing.
The reliance on future cash flow for refinancing and capital expenditures raises questions about the company’s current liquidity and operational stability.

FAQ

What is the amount of the Senior Notes offering by Constellation Brands?

Constellation Brands announced a public offering of $500 million in Senior Notes due 2030.

What is the interest rate for the Senior Notes?

The Senior Notes have an interest rate of 4.800%.

When is the expected closing date for the offering?

The offering is expected to close on May 1, 2025, subject to customary conditions.

How will Constellation Brands use the proceeds from the offering?

The proceeds will be used for general corporate purposes, including debt repayment and capital expenditures.

Who are the joint book-running managers for the offering?

The joint book-running managers include BofA Securities, BNP Paribas, Goldman Sachs, and J.P. Morgan.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$STZ Congressional Stock Trading

Members of Congress have traded $STZ stock 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $STZ stock by members of Congress over the last 6 months:

SENATOR MARKWAYNE MULLIN sold up to $50,000 on 02/13.
REPRESENTATIVE JULIE JOHNSON sold up to $15,000 on 01/15.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$STZ Insider Trading Activity

$STZ insiders have traded $STZ stock on the open market 14 times in the past 6 months. Of those trades, 1 have been purchases and 13 have been sales.

Here’s a breakdown of recent trading of $STZ stock by insiders over the last 6 months:

RICHARD SANDS has made 0 purchases and 2 sales selling 60,297 shares for an estimated $14,494,602.
ROBERT SANDS has made 0 purchases and 2 sales selling 60,297 shares for an estimated $14,494,602.
PARTNERS LLC WILDSTAR has made 0 purchases and 2 sales selling 60,297 shares for an estimated $14,494,602.
ZACHARY M STERN sold 59,637 shares for an estimated $14,335,542
BUSINESS HOLDINGS LP ZMSS sold 59,637 shares for an estimated $14,335,542
JAMES A. JR. SABIA (EVP & Pres. Beer) sold 36,086 shares for an estimated $8,768,540
WILLIAM A NEWLANDS (President & CEO) has made 0 purchases and 2 sales selling 32,426 shares for an estimated $7,851,291.
WILLIAM T GILES purchased 1,000 shares for an estimated $186,390
BUSINESS HOLDINGS LP SER sold 660 shares for an estimated $159,060
KANEENAT KRISTANN CAREY (EVP & Chief HR Officer) sold 330 shares for an estimated $78,870

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$STZ Hedge Fund Activity

We have seen 512 institutional investors add shares of $STZ stock to their portfolio, and 750 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CAPITAL INTERNATIONAL INVESTORS removed 6,044,583 shares (-59.4%) from their portfolio in Q4 2024, for an estimated $1,335,852,843
BERKSHIRE HATHAWAY INC added 5,624,324 shares (+inf%) to their portfolio in Q4 2024, for an estimated $1,242,975,604
VANGUARD GROUP INC added 1,821,969 shares (+13.3%) to their portfolio in Q4 2024, for an estimated $402,655,149
BOSTON PARTNERS removed 1,109,023 shares (-99.1%) from their portfolio in Q4 2024, for an estimated $245,094,083
D1 CAPITAL PARTNERS L.P. added 994,639 shares (+186.6%) to their portfolio in Q4 2024, for an estimated $219,815,219
VAN ECK ASSOCIATES CORP added 876,745 shares (+1844.7%) to their portfolio in Q4 2024, for an estimated $193,760,645
GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC added 736,780 shares (+42.9%) to their portfolio in Q4 2024, for an estimated $162,828,380

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$STZ Analyst Ratings

Wall Street analysts have issued reports on $STZ in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Barclays issued a "Overweight" rating on 04/14/2025
Needham issued a "Buy" rating on 02/10/2025
Piper Sandler issued a "Overweight" rating on 02/10/2025

To track analyst ratings and price targets for $STZ, check out Quiver Quantitative's $STZ forecast page.

$STZ Price Targets

Multiple analysts have issued price targets for $STZ recently. We have seen 3 analysts offer price targets for $STZ in the last 6 months, with a median target of $205.0.

Here are some recent targets:

An analyst from Barclays set a target price of $205.0 on 03/13/2025
An analyst from RBC Capital set a target price of $289.0 on 03/07/2025
Dara Mohsenian from Morgan Stanley set a target price of $202.0 on 02/27/2025

Full Release

ROCHESTER, N.Y., April 29, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it priced the public offering of $500.0 million aggregate principal amount of 4.800% Senior Notes due 2030 (the "notes") for a public offering price of 99.824% 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 May 1, 2025, subject to the satisfaction of customary closing conditions. Constellation intends to use the net proceeds from the offering for general corporate purposes, including repayment of commercial paper and other indebtedness, working capital, funding capital expenditures, and other business opportunities.

BofA Securities, Inc., BNP Paribas Securities Corp., 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 [email protected], BNP Paribas Securities Corp. toll-free at (800) 854-5674, contacting Goldman Sachs & Co. LLC toll-free at (866) 471-2526 or emailing [email protected], 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 https://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 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 Modelo Especial, Corona Extra, Pacifico, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West Whiskey, Casa Noble Tequila, and Mi CAMPO Tequila.

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
Amy Martin	585-678-7141	[email protected]	Joseph Suarez	773-551-4397	[email protected]
Carissa Guzski	315-525-7362	[email protected]	Snehal Shah	847-385-4940	[email protected]
			David Paccapaniccia	585-282-7227	[email protected]

A downloadable PDF copy of this news release can be found here
http://ml.globenewswire.com/Resource/Download/a719b7ce-2e86-455c-bfc2-90b330568c22