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Why Is Constellation Brands (STZ) Stock Down Today?


  • Constellation Brands (STZ) stock is dipping on senior notes news.
  • The company is offering $750 million worth of 4.9% Senior Notes due 2033.
  • Constellation plans to use these funds to pay down other debts.
STZ Stock - Why Is Constellation Brands (STZ) Stock Down Today?

Source: IgorGolovniov / Shutterstock

Constellation Brands (NYSE:STZ) stock is falling on Friday after the beverage company revealed details of a debt offering.

That debt offering has the company selling $750 million worth of 4.9% Senior Notes due 2033. The notes are being sold for a public offering price of 99.306% of the principal amount of the notes.

Constellation Brands intends to use the money raised from this note offering to pay down its other debts. That includes a three-year term loan facility as well as “outstanding commercial paper borrowings.”

The joint book-running managers of the offering are BofA Securities, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC. The offering is expected to close on May 1, 2023.

What This Means for STZ Stock

Constellation Brands is essentially using this note offering to delay its debt repayment. With this offering, it can repay debts with upcoming deadlines, but will still have to pay off the new debt created by the note sale.

As for trading movement today, only about 28,000 shares of STZ stock have changed hands so far. That’s a ways off from the beer, wine and spirits company’s daily average trading volume of around 1.1 million shares.

STZ stock is down 1% as of Friday morning.

Investors looking for more of the most recent stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market news traders need to know about on Friday! Among that is what has shares of ENDRA Life Sciences (NASDAQ:NDRA), Hillstream BioPharma (NASDAQ:HILS) and AGBA (NASDAQ:AGBA) stock moving today. You can find out more on these matters at the links below!

More Friday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-constellation-brands-stz-stock-down-today/.

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