Keurig Dr Pepper Inc. Enters into a New Unsecured 364 Day Credit Agreement
March 26, 2021 at 04:54 pm EDT
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On March 24, 2021, Keurig Dr Pepper Inc. entered into a new unsecured 364 day Credit Agreement (the “Credit Agreement”), among the Company, the lenders party thereto and Bank of America, N.A., as administrative agent. The Credit Agreement provides for a $1,500,000,000 revolving credit facility, and borrowings under the Credit Agreement may be used for general corporate purposes and working capital. The Credit Agreement will mature on March 23, 2022, subject to the Company’s option to extend the maturity date by one year and convert the outstanding loans to term loans so long as certain customary conditions are satisfied. The Credit Agreement replaces the Company’s former $1,500,000,000 364-day credit agreement, which has been terminated. The interest rate applicable to borrowings under the Credit Agreement ranges from a rate equal to LIBOR plus a margin of 1.000% to 1.625% or a base rate plus a margin of zero to 0.625%, depending on the rating of certain index debt of the Company. The Credit Agreement contains customary representations and warranties for investment grade financings. The Credit Agreement also contains certain customary affirmative covenants, including those that impose certain reporting and/or performance obligations on the Company and its subsidiaries, certain customary negative covenants that generally limit, subject to various exceptions, the Company and its subsidiaries from taking certain actions, including, without limitation, incurring liens, consummating certain fundamental changes and entering into transactions with affiliates, a financial covenant in the form of a total net leverage ratio and (iv) customary events of default (including a change of control) for financings of this type.
Keurig Dr Pepper Inc. is is a leading producer of non-alcoholic beverages in North America. The group markets hot drinks, soft drinks, flavoured water, fruit juices, concentrated and syrups. Net sales break down by family of products as follows:
- refreshment beverages (59.6%): Dr Pepper, Canada Dry, A&W, 7UP, Sunkist, Squirt, Big Red, RC Cola, Vernors, Snapple, Mott's, Bai, Hawaiian Punch, Clamato, Yoo-Hoo, Core, ReaLemon, evian, Vita Coco, Mr and Mrs T mixers and other brands ;
- coffee (27.5%): Green Mountain Coffee Roasters, The Original Donut Shop, McCafé, Laughing Man, REVV and Van Houtte brands. In addition, the group offers coffee machines and accessories;
- beverage concentrates (13%): Peñafiel, Clamato, Squirt, Canada Dry, Dr Pepper, Mott's and Crush brands.
At the end of 2023, the group had 30 manufacturing sites located mainly in the United States (24).
The United States account for 87.5% of net sales.