By Aleesia Forni
Virginia Beach, Oct. 29 – Dr. Pepper Snapple Group Inc. sold $750 million of senior notes (Baa1/BBB+) in tranches due 2025 and 2045 on Thursday, according to a market source and a FWP filing with the Securities and Exchange Commission.
A $500 million 3.4% tranche of 10-year notes priced at 99.403 to yield 3.471% with a spread of Treasuries plus 130 basis points.
Pricing came at the tight end of the Treasuries plus 135 bps area guidance which followed talk in the Treasuries plus 150 bps area.
Also, $250 million of 4.5% 30-year bonds sold with a 155 bps spread over Treasuries. Pricing was at 99.738 to yield 4.516%.
Pricing was also at the tight end. Guidance was set in the Treasuries plus 160 bps area, tightened from initial talk in the Treasuries plus 180 bps area.
The bonds have a change-of-control put at 101%.
Bookrunners are Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used to retire the issuer’s $500 million of 2.9% senior notes at maturity on Jan. 15, 2016 and for general corporate purposes.
The notes are guaranteed by current or future subsidiaries that guarantee other debt.
The maker of non-alcoholic beverages is based in Plano, Texas.
| Issuer: | Dr. Pepper Snapple Group Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
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| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Goldman, Sachs & Co., BB&T Capital Markets, Rabo Securities USA, Inc., U.S. Bancorp Investments Inc., BOSC Inc., HSBC Securities (USA) Inc.
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 9
|
| Change-of-control: | 101%
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Ten-year notes
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| Amount: | $500 million
|
| Maturity: | Nov. 15, 2025
|
| Coupon: | 3.4%
|
| Price: | 99.403
|
| Yield: | 3.471%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 135 bps area, tightened from Treasuries plus 150 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Aug. 15, 2025, then callable at par
|
|
|
| Thirty-year notes
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| Amount: | $250 million
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| Maturity: | Nov. 15, 2045
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| Coupon: | 4.5%
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| Price: | 99.738
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| Yield: | 4.516%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps area, tightened from Treasuries plus 180 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to May 15, 2045, then callable at par
|
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