BURLINGTON, Mass., and PLANO, Texas, U.S. — Keurig Dr Pepper (NYSE: KDP) announced today the pricing of its previously-announced $1.5 billion public offering of senior notes (the “Notes”), in a transaction that was nearly 10x oversubscribed. The offering consists of $750 million aggregate principal amount of 3.20% senior notes due 2030 and $750 million aggregate principal amount of 3.80% senior notes due 2050. Subject to customary conditions, the offering is expected to close on April 13, 2020.
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 which such Subsidiary Guarantor’s current and future unsubordinated indebtedness.
Keurig Dr Pepper estimates that the net proceeds from the offering will be approximately $1,481 million (after underwriting discounts and offering expenses). The Company intends to use the net proceeds of this offering to repay approximately $1,000 million of its outstanding borrowings under its 2018 credit agreement and the remainder to repay its outstanding commercial paper notes.
The remaining net proceeds, if any, will be used to fund costs of the offering and for other general corporate purposes. BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will act as joint book-running managers for the notes offering.
The offering of the notes is being made only by means of a prospectus and related prospectus supplement. Copies may be obtained from: BofA Securities, Inc., 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322 or by email at dg.prospectus_requests@bofa.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at prospectusny@ny.email.gs.com; and from J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attn: Investment Grade Syndicate Desk, telephone: (212) 834-4533.
An effective registration statement is on file with the Securities and Exchange Commission (“SEC”), and a copy of the prospectus and related prospectus supplement will also be available on the SEC’s website at www.sec.gov.
