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Keurig Dr Pepper announces strategic refinancing with $2.15 billion senior notes offering

Keurig Dr Pepper Justin Whitmore

BURLINGTON, Mass. and PLANO, TX, U.S. – Keurig Dr Pepper Inc. (NASDAQ: KDP) announced yesterday the pricing of its previously announced public offering of senior notes (the “Notes”). The offering consists of $1,150 million aggregate principal amount of 0.750% senior notes due 2024, $500 million aggregate principal amount of 2.250% senior notes due 2031 and $500 million aggregate principal amount of 3.350% senior notes due 2051. Subject to customary conditions, the offering is expected to close on March 15, 2021.

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 $2,134 million (after underwriting discounts and offering expenses).

Keurig Dr Pepper intends to use the net proceeds from this offering to fund the redemption of certain outstanding senior unsecured notes and to permanently repay in full and terminate its term loan facility that matures in February 2023 and, in each case, to pay any related premiums, accrued and unpaid interest and fees and expenses related thereto.

The remaining net proceeds, if any, will be used to fund the costs of the offering and for other general corporate purposes.

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