By Andrea Heisinger
New York, Jan. 6 - Dr. Pepper Snapple Group Inc. priced an upsized $500 million of 2.9% five-year senior notes on Thursday to yield 85 basis points over Treasuries, a syndicate source said.
The sale had initially been announced at $450 million.
The notes (Baa2/BBB/) priced at 99.889 to yield 2.924%.
The notes have a make-whole call at Treasuries plus 15 bps and feature a change-of-control put at 101%.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC were the bookrunners.
Co-managers were Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC.
Proceeds will be used to replace a portion of cash used to purchase 2018 notes that were tendered for.
The notes are guaranteed by domestic subsidiaries of the soft drink company based in Plano, Texas.
| Issuer: | Dr. Pepper Snapple Group Inc.
|
| Guarantors: | Domestic subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $500 million, upsized from $450 million
|
| Maturity: | Jan. 15, 2016
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Coupon: | 2.9%
|
| Price: | 99.889
|
| Yield: | 2.924%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 6
|
| Settlement date: | Jan. 11
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
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