Keurig parent prepares $8 billion six-part offering of senior notes; price talk emerges

By Devika Patel

Knoxville, Tenn., May 14 – Keurig Green Mountain Inc. parent Maple Parent Holdings Corp., through its subsidiary Maple Escrow Subsidiary, Inc., plans to price an $8 billion Rule 144A offering of senior notes, according to a press release.

According to a market source, the company will issue six tranches, due May 25, 2021; May 25, 2023; May 25, 2025; May 25, 2028; May 25, 2038 and May 25, 2048.

Price talk is in the Treasuries plus 105 bps area for the 2021 notes, in the Treasuries plus 135 bps area for the 2023 notes, in the Treasuries plus 160 bps area for the 2025 notes, in the Treasuries plus 175 bps area for the 2028 notes, in the Treasuries plus 205 bps area for the 2038 notes and in the Treasuries plus 215 bps area for the 2048 notes.

BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the bookrunners.

Settlement is expected in July.

Proceeds will be used with borrowings under new credit facilities and cash on hand for a special cash dividend, which will be paid to Dr Pepper Snapple Group, Inc. shareholders in connection with the previously announced combination of Maple and Dr Pepper Snapple and to refinance Dr Pepper Snapple’s existing revolving credit facility and Maple’s existing credit facility.

If the merger is not completed, the notes will be redeemed at 101.

Keurig is a Waterbury, Vt.-based personal beverage system company.

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