News

Keurig Dr Pepper closes $1.5 billion public offering

Logo provided.

April 14, 2020

Keurig Dr Pepper has closed its previously-announced $1.5 billion public offering of senior notes in a transaction that was nearly 10 times oversubscribed, according to a press release. The offering consists of $750 million aggregate principal amount of 3.2% senior notes due 2030 and $750 million aggregate principal amount of 3.8% senior notes due 2050.

"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," Ozan Dokmecioglu, chief financial officer, said in the press release.

The company estimated 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.