Nov 12 (Reuters) - Keurig Dr Pepper said on Thursday it has priced its public offering of nearly 58 million shares at $34.50 each, raising about $2 billion, as the beverage maker seeks to reduce debt ahead of its planned split into two publicly traded companies early next year.
• Keurig Dr Pepper announced last year it would separate into two independent companies, Beverage Co. and Global Coffee Co., with the transaction expected to close in early 2027
• The company on Thursday said it intends to use
the net proceeds to repay or repurchase about $2 billion of outstanding debt
• The company added it would also grant underwriters a 30-day option to purchase up to an additional $300 million of shares at the offering price
• Goldman Sachs and Morgan Stanley are acting as joint book-running managers for the offering
• As of September 30, 2026, Keurig Dr Pepper reported long-term debt excluding capitalized leases of about $21.06 billion, according to its latest quarterly filing
• Keurig completed the $18 billion buyout of Dutch coffee and tea company JDE Peet's in April
• Last week, Keurig said it expects slower US coffee profit growth in the fourth quarter on cautious spending and increased competition from private players
• Shares of the company fell about 4% in premarket trading
(Reporting by Koyena Das in Bengaluru; Additional reporting by Rhea Rose Abraham; Editing by Vijay Kishore and Rashmi Aich)
