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Get filing alertsConstellation Brands enters $300M delayed draw term loan credit agreement
Filed September 18, 2026 · Period ending September 18, 2026 · ~1 min read
Key Changes
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Entered into a $300 million delayed draw term loan credit agreement with M&T Bank as agent, available in up to two draws.
Item 1.01 verify on EDGAR → -
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Term loans mature two years after initial borrowing; undrawn commitments terminate by June 18, 2027 or earlier if fully drawn or after second draw.
Item 1.01 verify on EDGAR → -
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Interest margins range from 0.700% to 1.100% over Term SOFR or 0.000% to 0.100% over Base Rate, based on credit rating.
Item 1.01 verify on EDGAR → -
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Requires minimum interest coverage ratio of 2.50:1.00 and maximum net leverage ratio of 4.00:1.00, stepping up to 4.50:1.00 for four quarters after a material acquisition.
Item 1.01 verify on EDGAR → -
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Some lenders and the administrative agent also lend to Sands family investment vehicles secured by pledges of Constellation Brands class A common stock.
Item 1.01 verify on EDGAR →
Summary
Constellation Brands entered into a new $300 million delayed draw term loan credit agreement on September 18, 2026. The facility provides flexibility to draw up to two borrowings for general corporate purposes, including repayment of indebtedness. The terms include credit-rating-based interest margins and standard financial covenants consistent with the company's existing revolving facility.
The agreement also discloses that certain lenders and the administrative agent have lending relationships with Sands family investment vehicles, which are affiliates of the company due to their relationship with members of the Sands family. Those facilities are secured by pledges of Constellation Brands class A common stock and other credit support from Sands family members.
This related-party lending arrangement is disclosed but does not appear to alter the terms of the new credit agreement. For retail investors, this filing signals that the company has secured additional borrowing capacity with terms tied to its credit rating and existing covenant structure. The delayed draw nature means the company has not yet borrowed the funds, and the commitments expire by June 18, 2027 if not drawn.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 also reports this as a direct financial obligation (body incorporates the primary Item by reference).
Added in current filing · verify on EDGAR →
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The Company entered into the Credit Agreement on the Effective Date. See Item 1.01 which is incorporated herein by reference.
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The company also filed this under Item 2.03, which means it is reporting the arrangement as a direct financial obligation. The Item 2.03 text refers back to the Item 1.01 entry for the terms rather than restating them.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Credit Agreement provides for a delayed draw term loan available in up to two draws in the aggregate principal amount of $300 million.
The company entered into a new term loan credit agreement on September 18, 2026, providing up to $300 million in delayed draw term loans. The company may draw in up to two borrowings, and if drawn, intends to use proceeds for general corporate purposes including repayment of indebtedness.
Added in current filing · verify on EDGAR →
The Term Loans will bear interest, at the Company’s option, at Term SOFR or Base Rate (each, as defined in the Credit Agreement) plus (i) in the case of Term SOFR Term Loans, a margin ranging from 0.700% to 1.100% per annum based on the Company’s credit rating as determined by Standard & Poor’s Financial Services LLC (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”) and (ii) in the case of Base Rate Term Loans, a margin ranging from 0.000% to 0.100% per annum based on the Company’s credit rating as determined by S&P or Moody’s.
The term loans carry a credit-rating-based margin of 0.700% to 1.100% over Term SOFR, or 0.000% to 0.100% over Base Rate. Unused commitments accrue a 0.075% ticking fee beginning 30 days after the effective date.
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Figures/quotes linked to EDGAR · Narrative written by AI · Sep 26, 2026 · How we verify