Keurig Dr Pepper Inc.?s Proposed Unsecured Notes Rated 'BBB'; Leverage Remains High

NEW YORK (S&P Global Ratings) Mar. 1, 2021--S&P Global Ratings today assigned its 'BBB' issue-level rating to Burlington, Mass.-based Keurig Dr Pepper Inc.'s (KDP) proposed senior unsecured notes. The notes will rank pari passu with the company's existing senior unsecured debt. We expect proceeds of the bond offering will address upcoming debt maturities and repay in full and terminate its term loan A facility ($425 million). The company also entered into a new $1.5 billion, 364-day credit facility (which replaces its current facility). We view the bond offering as credit-positive as it enhances liquidity by extending duration and lowering interest rates. In addition, the company announced a small at-the-market (ATM) equity offering for a share amount sufficient (4.3 million shares)

...March 1, 2021 NEW YORK (S&P Global Ratings) Mar. 1, 2021--S&P Global Ratings today assigned its '###' issue-level rating to Burlington, Mass.-based Keurig Dr Pepper Inc.'s (KDP) proposed senior unsecured notes. The notes will rank pari passu with the company's existing senior unsecured debt. We expect proceeds of the bond offering will address upcoming debt maturities and repay in full and terminate its term loan A facility ($425 million). The company also entered into a new $1.5 billion, 364-day credit facility (which replaces its current facility). We view the bond offering as credit-positive as it enhances liquidity by extending duration and lowering interest rates. In addition, the company announced a small at-the-market (ATM) equity offering for a share amount sufficient (4.3 million shares) to satisfy the withholding tax obligations on upcoming restrictive share units vesting in 2021. We view the ATM as a modest positive as it demonstrates KDP's commitment to debt reduction. But we...

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