Dr Pepper extends early deadline for 6.82% notes, nixes exchange offer

By Susanna Moon

Chicago, Dec. 10 - Dr Pepper Snapple Group, Inc. said it extended the early tender deadline for its offer to purchase in cash up to $600 million principal amount of its $1,199,860,000 of outstanding 6.82% notes due 2018 to 5 p.m. ET on Dec. 14.

Investors had tendered $368 million principal amount of the notes as of 5 p.m. ET on Dec. 9, the previous early tender date.

The company also said that it canceled the exchange offer for up to $600 million of the 6.82% notes after concluding that it is unlikely to meet the minimum tender condition.

In the exchange, the company was offering a like amount of a new series of 4.287% senior notes due 2020 plus $203.28 of cash per $1,000 principal amount.

Each offer was subject to the receipt of tenders for at least $250 million of notes in that offer.

The company will pay $1,203.28 for each $1,000 principal amount of notes in the cash tender offer. The payment was determined based on a spread of 45 basis points over the yield on the 2.625% Treasury due Nov. 15, 2020.

This amount was set at 2 p.m. ET on Dec. 9 and includes an early participation premium of $30.00 for each note tendered by the early date. The exchange offer yield and tender offer yield came in at 3.637%.

Holders will also receive accrued interest up to but excluding the settlement date.

The exchange offer was only being made to holders who are qualified institutional buyers, as defined in Rule 144A under the Securities Act.

The tender offer is being made to all holders. It is subject to proration and will expire at 11:59 p.m. ET on Dec. 29.

The offers began on Dec. 1. At the time, the company said it planned to issue for cash a new series of senior debt securities with terms substantially similar to those of the exchange notes, except that they would have a five-year term and would be priced in accordance with general market conditions for debt securities of comparable maturities.

The tender offer is not conditioned on the completion of this issuance, and the company may elect to fund the cash consideration with cash on hand.

The exchange and information agent is D.F. King & Co., Inc. (212 269-5550, 800 628-8536 or drpepper@dfking.com).

Dr Pepper Snapple Group is a Plano, Texas-based producer of flavored beverages.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.