Dr Pepper Snapple gets $500 million five-year revolver at 80.5-130 bps

By Susanna Moon

Chicago, March 17 – Dr Pepper Snapple Group, Inc. refinanced its loans Thursday with a $500 million five-year revolving line of credit with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Morgan Stanley MUFG Loan Partners, LLC are the joint lead arrangers and joint bookrunners.

The credit agreement includes a $75 million letter of credit limit.

The loan commitments may be upsized by $250 million.

Interest ranges from Libor plus 80.5 basis points to 130 bps, based on the company’s credit ratings. The facility fee is 7 bps to 20 bps.

The covenants require the company to maintain a ratio of consolidated total debt of no more than 3.5 times, which may increase to 4 times for 12 months after an acquisition with debt incurred of at least $500 million.

The credit agreement matures on March 16, 2022, with two one-year extension options.

Bank of America, NA, Credit Suisse AG, Cayman Islands Branch and Morgan Stanley MUFG Loan Partners, LLC are the syndication agents. Deutsche Bank Securities Inc., HSBC Bank USA, NA, Goldman Sachs Bank USA, Cooperative Rabobank U.A., New York Branch and Wells Fargo Bank are the documentation agents.

The company terminated its five-year credit agreement dated Sept. 25, 2012 with JPMorgan Chase Bank as administrative agent that had been set to mature Sept. 25, 2017.

Dr Pepper is a maker of non-alcoholic beverages based in Plano, Texas.

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