Dr Pepper Snapple Group to sell US$500M in seven- and 10-year bonds to retire 1.7% notes due Dec. 21 to repay debt

Tracy McDonald

LOS ANGELES , November 8, 2011 (Industry Intelligence) – Dr Pepper Snapple Group Inc. will repay debt by selling off US$500 million in bonds, reported Dow Jones on Nov. 7.

Deutsche Bank Securities, Morgan Stanley, Credit Suisse and Goldman Sachs will broker the two-part sale of seven- and 10-year bonds, the sale of which will be used to retire 1.7% senior notes that mature on Dec. 21, 2011, of which the company has $400 million outstanding.

The company reported 3Q earnings of 71 cents a share as compared to 60 cents a share for the previous year, and also has 2.9% interest on senior debt due in 2016.

Morningstar bond strategist Dave Sekera said the current market condition points to the sale attracting investors easily, expecting a 1.25-percentage point risk premium on the new 10-year bonds and 1.15 percentage points on the seven-year bonds.

The primary source of this article is Dow Jones, New York, New York, on November 7, 2011.

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