Keurig to launch $6.4 billion credit facility during Jan. 18 week

By Sara Rosenberg

New York, Jan. 15 – Keurig Green Mountain Inc. is scheduled to hold a bank meeting in New York on Tuesday and a bank meeting in London on Thursday to launch its $6.4 billion senior secured credit facility, according to a market source.

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.

The facility consists of a $500 million five-year revolver, a $2.95 billion five-year term loan A, a $2,675,000,000 seven-year term loan B and a $275 million euro-equivalent seven-year term loan B, the source said.

Proceeds will be used to help fund the acquisition of the company by a JAB Holding Co.-led investor group and to refinance existing debt.

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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