New Issue: Keurig Dr Pepper sells $3 billion of notes due 2029, 2032, 2052

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, April 7 – Keurig Dr Pepper Inc. priced $3 billion of senior notes (Baa2/BBB) in three tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.

A $1 billion tranche of 3.95% seven-year notes priced at 99.813 to yield 3.981% and a spread of 125 basis points over Treasuries. Talk was in the Treasuries plus 140 bps area.

The company sold $850 million of 4.05% 10-year notes at 99.53 to yield 4.108%, or with a Treasuries plus 145 bps spread versus talk in the 160 bps area.

Finally, Keurig Dr Pepper sold $1.15 billion of 4.5% 30-year notes at 99.106 to yield 4.555%, or with a Treasuries plus 185 bps spread after talk in the Treasuries plus 200 bps area.

BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Intesa Sanpaolo SpA, Mizuho Securities USA LLC, Rabo Securities USA, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.

Proceeds will be used for tender offers to purchase for cash up to $400 million of its 4.417% senior notes due 2025; up to $600 million of its 4.597% senior notes due 2028; and up to $600 million of its 4.985% senior notes due 2038, its 4.5% senior notes due 2045, its 4.42% senior notes due 2046 and its 5.085% senior notes due 2048.

The beverage conglomerate is based in Burlington, Mass.

Issuer:	Keurig Dr Pepper Inc.
Amount:	$3 billion
Description:	Senior notes
Bookrunners:	BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Intesa Sanpaolo SpA, Mizuho Securities USA LLC, Rabo Securities USA, Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
Senior co-managers:	BBVA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
Co-managers:	Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, Credit Suisse Securities (USA) LLC, Fifth Third Securities, Inc., Huntington Securities, Inc., ICBC Standard Bank plc, M&T Securities, Inc. and PNC Capital Markets LLC
Trustee:	Computershare Trust Co., NA
Counsel to issuer:	Skadden, Arps, Slate, Meagher & Flom LLP
Counsel to bookrunners:	Weil, Gotshal & Manges LLP
Trade date:	April 7
Settlement date:	April 22
Rating:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered
Seven-year notes
Amount:	$1 billion
Maturity:	April 15, 2029
Coupon:	3.95%
Price:	99.813
Yield:	3.981%
Spread:	Treasuries plus 125 bps
Call features:	Make-whole call before Feb. 15, 2029 at Treasuries plus 20 bps; thereafter at par
Price talk:	Treasuries plus 140 bps area
Cusip:	49271VAP5
10-year notes
Amount:	$850 million
Maturity:	April 15, 2032
Coupon:	4.05%
Price:	99.53
Yield:	4.108%
Spread:	Treasuries plus 145 bps
Call features:	Make-whole call before Jan. 15, 2032 at Treasuries plus 25 bps; thereafter at par
Price talk:	Treasuries plus 160 bps area
Cusip:	49271VAQ3
30-year notes
Amount:	$1.15 billion
Maturity:	April 15, 2052
Coupon:	4.5%
Price:	99.106
Yield:	4.555%
Spread:	Treasuries plus 185 bps
Call features:	Make-whole call before Oct. 15, 2051 at Treasuries plus 30 bps; thereafter at par
Price talk:	Treasuries plus 200 bps area
Cusip:	49271VAR1

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