Constellation Brands, Inc. filed a Form 8-K with the SEC on September 18, 2026, disclosing its entry into a Term Loan Credit Agreement providing for up to $300 million in delayed draw term loans, with Manufacturers and Traders Trust Company serving as administrative agent.

Key Highlights

  • Facility size: The Credit Agreement provides for a delayed draw term loan available in up to two draws in the aggregate principal amount of $300 million.
  • Commitment expiry: Commitments terminate on the earliest of full draw, second funding date, or June 18, 2027.
  • Loan maturity: Term Loans mature two years after the date of the initial borrowing, if any.
  • Interest rate: At the company's option, Term SOFR plus a margin of 0.700% to 1.100% per annum, or Base Rate plus a margin of 0.000% to 0.100% per annum, each based on the company's credit rating from S&P or Moody's.
  • Ticking fee: Unused commitments incur a fee of 0.075% per annum, beginning to accrue 30 days after September 18, 2026.
  • Financial covenants: The agreement requires a minimum Consolidated Interest Coverage Ratio of 2.50:1.00 and a maximum Consolidated Net Leverage Ratio of 4.00:1.00, with a step-up to 4.50:1.00 following a Material Acquisition.
  • Intended use: According to the filing, if drawn, proceeds are intended for general corporate purposes, including repayment of indebtedness.

Constellation Brands Details Terms of New Delayed Draw Term Loan Facility

Constellation Brands, Inc. (NYSE:STZ) disclosed on September 18, 2026, that it entered into a Term Loan Credit Agreement with Manufacturers and Traders Trust Company as administrative agent and certain other lenders. According to the filing, the facility makes available up to $300 million in aggregate principal through a delayed draw structure, allowing the company to access funds in up to two draws before commitments expire.

The filing states that the Term Loans will bear interest at the company's option at either Term SOFR or Base Rate, each as defined in the Credit Agreement, plus applicable margins tied to the company's credit rating as determined by S&P or Moody's. For Term SOFR loans, the margin ranges from 0.700% to 1.100% per annum; for Base Rate loans, from 0.000% to 0.100% per annum. Unused commitments will carry a ticking fee of 0.075% per annum, accruing beginning 30 days after the Effective Date.

The Credit Agreement includes affirmative and negative covenants the company described as "customary for facilities of this type" and consistent with its existing Eleventh Amended and Restated Revolving Credit Agreement dated April 28, 2025. These include restrictions on subsidiary indebtedness, additional liens, mergers and consolidations, affiliate transactions, and sale and leaseback transactions. The company must maintain a minimum Consolidated Interest Coverage Ratio of 2.50:1.00 each fiscal quarter and a maximum Consolidated Net Leverage Ratio of 4.00:1.00, calculated net of up to $750 million of unrestricted cash and cash equivalents. The filing also notes standard events of default, upon which outstanding loans may be accelerated and lender commitments may be terminated. The filing was signed by Garth Hankinson, Executive Vice President and Chief Financial Officer.

What Was Disclosed

Constellation Brands reported entering a $300 million delayed draw term loan facility on September 18, 2026, with commitments expiring no later than June 18, 2027, and loans maturing two years from initial borrowing. Key terms include rate margins, a ticking fee, and financial maintenance covenants.