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Keurig Dr Pepper Announces Pricing of Secondary Offering of Common Stock by JAB

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Keurig Dr Pepper (KDP) has announced the pricing of a secondary offering of 60 million shares by JAB Holding Company at $32.85 per share. JAB has granted the underwriter a 30-day option to purchase up to an additional 9 million shares. Following the offering completion, JAB will own approximately 16.5% of KDP's outstanding common stock, or 15.8% if the underwriter's option is fully exercised. The remaining JAB-owned shares will be subject to a 90-day lock-up agreement. Morgan Stanley is serving as the underwriter for this secondary offering.

Keurig Dr Pepper (KDP) ha annunciato il prezzo di un'offerta secondaria di 60 milioni di azioni da parte di JAB Holding Company a 32,85 $ per azione. JAB ha concesso all'underwriter un'opzione di 30 giorni per acquistare fino a ulteriori 9 milioni di azioni. Al termine dell'offerta, JAB possiederà circa 16,5% delle azioni ordinarie in circolazione di KDP, o 15,8% se l'opzione dell'underwriter viene esercitata completamente. Le restanti azioni possedute da JAB saranno soggette a un accordo di lock-up di 90 giorni. Morgan Stanley sta fungendo da underwriter per questa offerta secondaria.

Keurig Dr Pepper (KDP) ha anunciado el precio de una oferta secundaria de 60 millones de acciones por parte de JAB Holding Company a $32.85 por acción. JAB ha otorgado al suscriptor una opción de compra de 30 días para adquirir hasta 9 millones de acciones adicionales. Tras la finalización de la oferta, JAB poseerá aproximadamente 16.5% de las acciones en circulación de KDP, o 15.8% si la opción del suscriptor se ejerce completamente. Las acciones restantes en poder de JAB estarán sujetas a un acuerdo de bloqueo de 90 días. Morgan Stanley actúa como suscriptor para esta oferta secundaria.

커리그 드 페퍼 (KDP)는 JAB 홀딩 컴퍼니가 6천만 주의 2차 공모 가격을 주당 32.85달러로 발표했다고 밝혔습니다. JAB는 인수인에게 추가로 900만 주를 구매할 수 있는 30일 옵션을 부여했습니다. 공모가 완료되면 JAB는 KDP의 총 발행 보통주 중 약 16.5%를 소유하게 되며, 인수인의 옵션이 완전히 행사될 경우 15.8%가 됩니다. JAB가 보유한 나머지 주식은 90일 잠금 계약의 대상이 됩니다. 모건 스탠리는 이 2차 공모의 인수인으로 활동하고 있습니다.

Keurig Dr Pepper (KDP) a annoncé le prix d'une offre secondaire de 60 millions d'actions par JAB Holding Company à 32,85 $ par action. JAB a accordé à l'underwriter une option de 30 jours pour acheter jusqu'à 9 millions d'actions supplémentaires. Suite à la réalisation de l'offre, JAB détiendra environ 16,5% des actions ordinaires en circulation de KDP, ou 15,8% si l'option de l'underwriter est entièrement exercée. Les actions restantes détenues par JAB seront soumises à un accord de verrouillage de 90 jours. Morgan Stanley agit en tant qu'underwriter pour cette offre secondaire.

Keurig Dr Pepper (KDP) hat den Preis für ein nachträgliches Angebot von 60 Millionen Aktien durch die JAB Holding Company zu einem Preis von 32,85 $ pro Aktie bekannt gegeben. JAB hat dem Underwriter eine 30-tägige Option eingeräumt, bis zu 9 Millionen zusätzliche Aktien zu erwerben. Nach Abschluss des Angebots wird JAB ungefähr 16,5% der ausgegebenen Stammaktien von KDP besitzen, oder 15,8%, wenn die Option des Underwriters vollständig ausgeübt wird. Die verbleibenden JAB-Besitzanteile unterliegen einem 90-tägigen Sperrvertrag. Morgan Stanley fungiert als Underwriter für dieses nachgelagerte Angebot.

Positive
  • None.
Negative
  • Major shareholder JAB Holding Company reducing its stake significantly
  • Large secondary offering of 60 million shares could create selling pressure
  • Potential additional dilution if 9 million share option is exercised

Insights

The secondary offering of 60 million shares at $32.85 per share by JAB Holdings represents a significant ownership reduction from their position in KDP. This transaction, valued at approximately $1.97 billion, will reduce JAB's stake to 16.5% (or 15.8% if the overallotment option is exercised). The pricing at $32.85 represents a slight discount to recent market prices, which is typical for large block sales.

The 90-day lock-up agreement on JAB's remaining shares provides temporary stability for the stock price. While this large share sale could create short-term pressure on KDP's stock price, it improves the public float and market liquidity. The increased free float could potentially make the stock more attractive to institutional investors and index funds.

BURLINGTON, Mass., and FRISCO, Texas, Oct. 29, 2024 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) (the "Company or "KDP") announced today the pricing of its previously-announced registered public offering of 60,000,000 shares through a secondary offering by a subsidiary of JAB Holding Company s.a.r.l. ("JAB"), at a price to the public of $32.85 per share. JAB has also granted the underwriter a 30-day option to purchase up to an additional 9,000,000 shares.

Following the completion of the offering, JAB will beneficially own approximately 16.5% of KDP's outstanding common stock, or approximately 15.8% assuming full exercise of the underwriter's option to purchase additional shares.  The remaining shares beneficially owned by JAB will be subject to a 90-day lock-up agreement with the underwriter.

Morgan Stanley is acting as the underwriter for the secondary offering.

The offering will be made only by means of an effective registration statement and a prospectus. The Company has previously filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement (including a prospectus) on Form S-3 (File No. 333-266989) and a prospectus supplement, each dated August 19, 2022, as well as a preliminary prospectus supplement for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the accompanying prospectus supplements and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. These documents can be accessed through the SEC's website at www.sec.gov or by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Investors:
Investor Relations
Keurig Dr Pepper
T: 888-340-5287 / IR@kdrp.com

Media:
Katie Gilroy
Keurig Dr Pepper
T: 781-418-3345 / katie.gilroy@kdrp.com

About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of approximately $15 billion, we hold leadership positions in beverage categories including soft drinks, coffee, tea, water, juice and mixers, and have the #1 single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model builds emerging growth platforms in categories such as premium coffee, energy, sports hydration and ready-to-drink coffee. Our brands include Keurig®, Dr Pepper®, Canada Dry®, Mott's®, A&W®, Snapple®, Peñafiel®, 7UP®, Green Mountain Coffee Roasters®, Clamato®, Core Hydration® and The Original Donut Shop®. Driven by a purpose to Drink Well. Do Good., our 28,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities and the planet.

FORWARD-LOOKING STATEMENTS
Certain statements contained herein are "forward-looking statements" within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as "outlook," "guidance," "anticipate," "expect," "believe," "could," "estimate," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "target," "will," "would," and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially.

Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K, the prospectus supplements and subsequent filings with the SEC. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.

(PRNewsfoto/Keurig Dr Pepper)

 

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SOURCE Keurig Dr Pepper Inc.

FAQ

What is the price per share for KDP's secondary offering announced on October 29, 2024?

The secondary offering was priced at $32.85 per share.

How many shares is JAB Holding Company selling in KDP's secondary offering?

JAB Holding Company is selling 60 million shares, with an option for the underwriter to purchase an additional 9 million shares.

What will be JAB Holding Company's ownership percentage in KDP after the secondary offering?

JAB will own approximately 16.5% of KDP's outstanding common stock, or 15.8% if the underwriter's option is fully exercised.

Who is the underwriter for KDP's secondary offering?

Morgan Stanley is acting as the underwriter for the secondary offering.

Keurig Dr Pepper Inc.

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