Dr Pepper Snapple And Keurig Ratings Off CreditWatch And Equalized At 'BBB' On Pending Merger; Outlook Stable

U.S.-based Dr Pepper Snapple (DPS) is merging with Keurig Green Mountain (KGM) and launching an $8 billion notes offering to help fund the transaction. We expect the transaction to close in July 2018. JAB Holding Company S.a r.l. (JAB) and its partners will contribute $9 billion of new common equity to the merger. JAB will be the controlling shareholder (72%-73%); Mondelez International, JAB's partner in Keurig, will hold an approximately 13%-14% stake in the new company; and DPS shareholders will receive a one-time cash distribution of roughly $18.9 billion and own 13% of the merged company. We are removing the corporate credit ratings on DPS and KGM from CreditWatch. Concurrently, we are raising our KGM corporate credit rating to 'BBB'

...+ U.S.-based Dr Pepper Snapple (DPS) is merging with Keurig Green Mountain (KGM) and launching an $8 billion notes offering to help fund the transaction. We expect the transaction to close in July 2018. + JAB Holding Company S.a r.l. (JAB) and its partners will contribute $9 billion of new common equity to the merger. JAB will be the controlling shareholder (72%-73%); Mondelez International, JAB's partner in Keurig, will hold an approximately 13%-14% stake in the new company; and DPS shareholders will receive a one-time cash distribution of roughly $18.9 billion and own 13% of the merged company. + We are removing the corporate credit ratings on DPS and KGM from CreditWatch. Concurrently, we are raising our KGM corporate credit rating to '###' and lowering the DPS corporate credit rating to '###'. + Subsequently, we are withdrawing the corporate credit rating on KGM upon its repayment of its secured debt. The merged corporate credit rating will remain at DPS and the merged entity will be...

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