BURLINGTON, Mass. and FRISCO, Texas, April 7,
2022 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ:
KDP) 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. The Company 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.
The offering of the Notes is being made only by means of a
prospectus and related prospectus supplement. The Company has filed
a registration statement (including the prospectus and related
prospectus supplement) with the Securities and Exchange Commission
(the "SEC") for this offering to which this communication relates.
Before you invest, you should read the prospectus and related
prospectus supplement incorporated in that registration statement
and other documents the Company has filed with the SEC for more
complete information about the Company and this offering. You may
get these documents for free by visiting EDGAR on the SEC Web site
at www.sec.gov. Alternatively, 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
prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, 383
Madison Avenue, New York, New York
10179, Attn: Investment Grade Syndicate Desk, telephone:
212-834-4533; and Morgan Stanley & Co. LLC, 1585 Broadway,
New York, New York 10036,
telephone: 1-800-718-1649.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the Notes in any jurisdiction in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage company in
North America, with annual revenue
approaching $13 billion and
approximately 27,000 employees. KDP holds leadership positions in
soft drinks, specialty coffee and tea, water, juice and juice
drinks and mixers, and markets the #1 single serve coffee brewing
system in the U.S. and Canada. The
Company's portfolio of more than 125 owned, licensed and partner
brands is designed to satisfy virtually any consumer need, any
time, and includes the owned brands of Keurig®, Dr Pepper®, Green
Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott's®,
CORE® and The Original Donut Shop®. Through its powerful sales and
distribution network, KDP can deliver its portfolio of hot and cold
beverages to nearly every point of purchase for consumers. The
Company is committed to sourcing, producing and distributing its
beverages responsibly through its Drink Well. Do Good. corporate
responsibility platform, including efforts around circular
packaging, efficient natural resource use and supply chain
sustainability.
Forward-Looking Statements
Certain statements contained herein are "forward-looking
statements" within the meaning of applicable securities laws and
regulations. These statements are often, but not always, made
through the use of words or phrases such as "may," "might,"
"should," "could," "predict," "potential," "believe," "expect,"
"continue," "will," "anticipate," "seek," "estimate," "intend,"
"plan," and "would," or the negative version of those words or
other comparable words or phrases of a future or forward-looking
nature. These forward-looking statements have been based on the
Company's current views with respect to future events, the timing
of this notes offering and the intended use of proceeds from this
notes offering. These forward-looking statements are subject to a
number of risks and uncertainties including prevailing market
conditions, as well as other factors. All of the forward-looking
statements are qualified in their entirety by reference to the
factors discussed under "Risk Factors" in Part I, Item 1A of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2021 and the Company's
other filings with the SEC. In addition to these risk factors,
uncertainties concerning ongoing hostilities between Russia and Ukraine and the related impacts on
macroeconomic conditions, including, among other things, interest
rates may also present certain risks, uncertainties and assumptions
that might cause actual results, performance or achievements to
differ materially from those expressed or implied in such
forward-looking statements. Forward-looking statements represent
the Company's estimates and assumptions only as of the date that
they were made. The Company does not undertake any duty to update
the forward-looking statements, and the estimates and assumptions
associated with them, after the date of this release, except to the
extent required by applicable law.
Investor Contact:
Steve Alexander
(972) 673-6769
steve.alexander@kdrp.com
Media Contact:
Katie Gilroy
(781) 418-3345
katie.gilroy@kdrp.com
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SOURCE Keurig Dr Pepper Inc.