Overview
- The upsized convertible preferred round is co-led by Apollo and KKR, with participation from investors including accounts advised by T. Rowe Price Investment Management.
- Keurig Dr Pepper no longer plans a partial IPO of Beverage Co., which will house non-coffee drinks after the split.
- The company targets closing the €15.7bn JDE Peet’s acquisition by early April and completing the separation into Beverage Co. and Global Coffee Co. by year-end.
- Terms remain largely unchanged from October, including a $37.25 initial conversion price and a 4.75% preferred dividend, and the security will remain with Beverage Co. after the separation.
- The revised funding mix includes roughly $9bn of long-term debt, $8.5bn of equity and the assumption of about $5bn of JDE Peet’s bonds, with expected ~4.5x net leverage at close and about 10% EPS accretion in the first full year.