By Andrea Heisinger
New York, Dec. 14 - Dr Pepper Snapple Group Inc. priced $850 million of senior notes (Baa3/BBB-/) in two tranches on Monday, an informed source said.
The $400 million of 1.7% two-year notes priced at 99.924 to yield 1.739% with a spread of Treasuries plus 90 basis points. The notes are callable at a make-whole amount of Treasuries plus 15 bps.
A $450 million tranche of 2.35% three-year notes priced at 99.963 to yield 2.363%, or 103 bps over Treasuries. The notes have a make-whole call at Treasuries plus 20 bps.
Both tranches came in at the tight end of price talk. Guidance was 95 bps over Treasuries for the two-year notes, and the three-year tranche was talked at 110 bps over Treasuries.
The notes feature a change-of-control put of 101%.
Morgan Stanley & Co. and UBS Investment Bank were tapped as bookrunners.
Co-managers were Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc. and Wells Fargo Securities.
Proceeds will be used to pay down debt under a senior unsecured term loan A facility.
The deal is guaranteed by the company's subsidiaries.
The non-alcoholic beverage maker is based in Plano, Texas.
| Issuer: | Dr Pepper Snapple Group Inc.
|
| Issue: | Senior notes
|
| Amount: | $850 million
|
| Bookrunners: | Morgan Stanley & Co., UBS Investment Bank
|
| Co-managers: | Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Two-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 21, 2011
|
| Coupon: | 1.7%
|
| Price: | 99.924
|
| Yield: | 1.739%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps
|
|
|
| Three-year notes
|
| Amount: | $450 million
|
| Maturity: | Dec. 21, 2012
|
| Coupon: | 2.35%
|
| Price: | 99.963
|
| Yield: | 2.363%
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 110 bps
|
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