BURLINGTON, Mass. and PLANO, Texas, U.S. – Keurig Dr Pepper (NYSE: KDP) (the “Company” or “KDP”) announced today a strategic refinancing program, intended to extend the Company’s debt maturities and enhance its liquidity profile.
In making the announcement, the Company indicated that it has commenced a public offering of senior notes, subject to market and other customary conditions, as well as the refinancing and upsizing of the Company‘s existing revolving credit facility.
The Company intends to use the net proceeds from the sale of the notes to repay short-term commercial paper notes and current borrowings under its existing revolving credit facilities. The strategic refinancing is not expected to change the Company’s total debt balance or its deleveraging commitments.
“The strategic refinancing announced this morning is another proactive step we are taking at Keurig Dr Pepper to increase our existing excess liquidity to a level that would far exceed potential increased liquidity needs, even in the event of a protracted downturn.
We have consistently taken a conservative approach to managing our business, including our balance sheet and financial health, and today’s announcement is yet another indication of this financial discipline,” stated Chief Financial Officer Ozan Dokmecioglu.
BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will act as joint book-running managers for the notes offering.