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