Sunday 07 August 2022

Keurig Dr Pepper announces pricing of $3.0b of Senior Notes

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BURLINGTON, Mass. and FRISCO, Texas, USA — Keurig Dr Pepper Inc. announced today the pricing of its previously announced public offering of senior notes (collectively, the “Notes”). The offering consists of $1,000 million aggregate principal amount of 3.950% senior notes due 2029, $850 million aggregate principal amount of 4.050% senior notes due 2032 and $1,150 million aggregate principal amount of 4.500% senior notes due 2052. Subject to customary conditions, the offering is expected to close on April 22, 2022.

The Notes will be the unsecured and unsubordinated obligations of the Company and will rank equally in right of payment with all of the Company’s current and future unsubordinated indebtedness.

The Notes will be guaranteed by certain of the Company’s domestic subsidiaries (each a “Subsidiary Guarantor”) and will be fully and unconditionally guaranteed by all of its existing and future subsidiaries that guarantee any of its other indebtedness (each a “Subsidiary Guarantee”).

Each such Subsidiary Guarantee will be an unsecured and unsubordinated obligation of the Subsidiary Guarantor providing such Subsidiary Guarantee and will rank equally in right of payment with such Subsidiary Guarantor’s current and future unsubordinated indebtedness.

The Company estimates that the net proceeds from the offering will be approximately $2,961 million (after underwriting discounts and offering expenses). Concurrently with this offering, the Company commenced a series of tender offers (the “Tender Offers”) to purchase for cash certain of its outstanding series of senior unsecured notes.

Keurig Dr Pepper intends to use the net proceeds from this offering, together with cash on hand, if necessary, to fund the purchase price and accrued and unpaid interest for the notes purchased in the Tender Offers and to redeem an outstanding series of senior unsecured notes.

This offering is not contingent on the consummation of the Tender Offers or the redemption.

In the event that the Tender Offers and the redemption are not consummated, the Company intends to use the net proceeds from this offering for general corporate purposes, including working capital, acquisitions, retirement of debt and other business opportunities.

BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC will act as joint book-running managers for this notes offering.

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