By Cristal Cody
Tupelo, Miss., May 14 – Keurig Green Mountain Inc. priced an $8 billion offering of senior notes (Baa2/BBB) in six tranches on Monday, according to a market source.
The Rule 144A and Regulation S notes were priced via Maple Escrow Subsidiary, Inc., a unit of Keurig parent Maple Parent Holdings Corp.
The company sold $1.75 billion of 3.551% three-year notes at a spread of 85 basis points over Treasuries.
The $2 billion tranche of 4.057% five-year notes priced at 120 bps over Treasuries.
Keurig priced $1 billion of 4.417% seven-year notes with a Treasuries plus 145 bps spread.
The issuer sold $2 billion of 4.597% 10-year notes at a 160 bps over Treasuries spread.
The $500 million tranche of 4.985% 20-year notes were sold with a spread of 185 bps over Treasuries.
In the final tranche, Keurig priced $750 million of 5.085% 30-year notes with a spread of Treasuries plus 195 bps.
Price talk was 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 were the active 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.
| Issuer: | Maple Escrow Subsidiary, Inc.
|
| Amount: | $8 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC
|
| Trade date: | May 14
|
| Settlement: | July
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 25, 2021
|
| Coupon: | 3.551%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 25, 2023
|
| Coupon: | 4.057%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 135 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 25, 2025
|
| Coupon: | 4.417%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 160 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 25, 2028
|
| Coupon: | 4.597%
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 175 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | May 25, 2038
|
| Coupon: | 4.985%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 190 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | May 25, 2048
|
| Coupon: | 5.085%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 215 bps area
|
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