Dr Pepper Snapple to redeem $360 million of 6.82% notes on Oct. 11

By Wendy Van Sickle

Columbus, Ohio, Sept. 8 – Dr Pepper Snapple Group Inc. set an Oct. 11 redemption date for its $360 million of 6.82% senior notes due 2018, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price will be the greater of 100% of the principal amount of notes outstanding or the sum of the present values of the remaining scheduled payments of the notes to be redeemed discounted to the date of redemption on a semiannual basis at the Treasury rate plus 45 basis points.

In each case, the issuer will also pay accrued interest to but excluding the redemption date.

As previously reported, the company will fund the partial redemption of the notes using proceeds from a $400 million offering of 2.55% 10-year senior notes that priced on Wednesday with a spread of 105 bps over Treasuries.

A total of $724 million of the 6.82% notes is outstanding before giving effect to the redemption.

The maker of non-alcoholic beverages is based in Plano, Texas.

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