STZ · Constellation Brands, Inc.

Constellation Brands executed a strategic debt refinancing by issuing $500 million of 4.850% Senior Notes due 2031 under Supplemental Indenture No. 37 dated May 6, 2026, supplemented to the Base Indenture from April 17, 2012. This new issuance, registered under the Securities Act via Form S-3 (File No. 333-291350), carries semi-annual interest payments starting November 6, 2026, and matures on May 6, 2031, with the company retaining optional redemption rights. Concurrently, the company provided notice for the full early redemption of its entire $600 million outstanding 3.700% Senior Notes due 2026, set for May 18, 2026, at a price calculated per the applicable indenture terms. The Supplemental Indenture incorporates standard protections for noteholders, including events of default triggered by payment failures (with 30-day cures for interest), covenant non-compliance, cross-defaults exceeding $200 million in indebtedness, and bankruptcy events, where holders of 25% of outstanding notes can accelerate maturity. Covenants restrict liens and sale-leaseback transactions, with a change of control offer provision. This transaction refinances near-term debt maturities, extending average debt duration while stepping up the coupon rate, potentially reflecting current market conditions for corporate borrowing.