BURLINGTON, Mass. and PLANO, Texas, April 13, 2020 /PRNewswire/ -- Keurig Dr Pepper (NYSE: KDP) announced today that it has closed 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.
Commenting on the announcement, KDP Chief Financial Officer Ozan Dokmecioglu stated, "We are very pleased with the execution of this offering and the continued strong support we receive from the banking community. This proactive refinancing extends our maturities and increases our liquidity to a level that we believe enables us to more than meet our commitments, even in a prolonged downturn, as we continue to exercise financial discipline and ensure the long-term financial health of KDP."
The Company 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.
The Notes are the unsecured and unsubordinated obligations of the Company and rank equally in right of payment with all of the Company's current and future unsubordinated indebtedness. The Notes are guaranteed by certain of the Company's domestic subsidiaries (each a "Subsidiary Guarantor") and are 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 is an unsecured and unsubordinated obligation of the Subsidiary Guarantor providing such Subsidiary Guarantee and ranks equally in right of payment with such Subsidiary Guarantor's current and future unsubordinated indebtedness.
BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey, Inc. acted 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 email@example.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 firstname.lastname@example.org; 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 is also be available on the SEC's website at www.sec.gov.
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue in excess of $11 billion and 25,000+ 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 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.