Dr Pepper Snapple holders tender $475.73 million 6.82% notes due 2018

By Susanna Moon

Chicago, Dec. 30 - Dr Pepper Snapple Group, Inc. said investors had tendered $475,732,000 principal amount of its $1,199,860,000 of outstanding 6.82% notes due 2018 by the time the offer expired at 11:59 p.m. ET on Dec. 29.

The company paid $577,441,312.90 in cash for the notes on Dec. 30. This amount includes accrued interest.

The company paid $1,203.28 for each $1,000 principal amount of notes. The payment was determined using a spread of 45 basis points over the yield on the 2.625% Treasury due Nov. 15, 2020.

This amount was set at 2 p.m. ET on Dec. 9 and includes an early participation premium of $30.00 for notes tendered by the early date. The tender offer yield came in at 3.637%.

Holders also received accrued interest up to but excluding the settlement date.

Dr Pepper said on Dec. 15 that investors had tendered $465 million principal amount of the notes as of the early tender deadline at 5 p.m. ET on Dec. 14. That was up from $368 million notes as of 5 p.m. ET on Dec. 9, the previous early tender date before it was extended on Dec. 10.

The company noted on Dec. 10 that it canceled the exchange offer for up to $600 million of the 6.82% notes after concluding that it was unlikely to meet the minimum tender condition.

In the exchange, the company was offering a like amount of a new series of 4.287% senior notes due 2020 plus $203.28 of cash per $1,000 principal amount.

Each offer was subject to the receipt of tenders for at least $250 million of notes in that offer.

The offers began on Dec. 1. At the time, the company said it planned to issue for cash a new series of senior debt securities with terms substantially similar to those of the exchange notes, except that they would have a five-year term and would be priced in accordance with general market conditions for debt securities of comparable maturities.

The tender offer was not conditioned on the completion of this issue, and the company could elect to fund the cash consideration with cash on hand.

The information agent was D.F. King & Co., Inc. (212 269-5550, 800 628-8536 or drpepper@dfking.com).

Dr Pepper Snapple Group is a Plano, Texas-based producer of flavored beverages.

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