Constellation Brands Inc. (NYSE: STZ) priced a public offering of $500 million in senior notes due 2031 at 4.850% interest, the company announced May 4. The notes were priced at 99.943% of principal amount.

The offering is scheduled to close May 6, subject to customary conditions. The notes will rank equally with the company's other senior unsecured debt obligations.

Constellation plans to use proceeds from the offering, combined with commercial paper borrowings and cash on hand, to redeem all outstanding 3.700% senior notes due 2026. The company has $600 million in aggregate principal amount of the 2026 notes outstanding. Remaining proceeds will fund general corporate purposes.

BofA Securities Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC and Truist Securities Inc. serve as joint book-running managers for the offering.

The Rochester, New York-based company produces beer, wine and spirits with operations in the United States, Mexico, New Zealand and Italy. Its brand portfolio includes Modelo Especial, Corona Extra, Robert Mondavi Winery and High West Whiskey.