Keurig gets $6.4 billion credit facility commitment for buyout

By Sara Rosenberg

New York, Jan. 12 – Keurig Green Mountain Inc. has received a commitment for an up to $6.4 billion senior secured credit facility to help fund its acquisition by a JAB Holding Co.-led investor group and refinance existing debt, according to a DEFM14-A filed with the Securities and Exchange Commission on Tuesday.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Rabobank provided the debt commitment.

Under the agreement, Keurig is being bought for $92.00 per share in cash, or a total equity value of about $13.9 billion.

JAB is buying Keurig in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts BV, a coffee company, including Mondelez International and entities affiliated with BDT Capital Partners.

Other funds for the transaction will come from about $8.5 billion in equity.

Closing is expected this quarter, subject to customary conditions, including receipt of regulatory approvals and shareholder approval. The transaction is not subject to a financing condition.

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

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