Keurig Dr Pepper plans $2 billion stock offering to cut debt ahead of split
Nov 12 (Reuters) - Keurig Dr Pepper KDP.O said on Thursday it plans to raise $2 billion through an underwritten public stock offering, as the beverage maker seeks to reduce debt ahead of its planned breakup 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