Feb 23 (Reuters) - Keurig Dr Pepper said on Monday it had raised an additional $1.5 billion of equity funding from long-term investors as part of its financing plan for the roughly $18 billion
Keurig Dr Pepper Adds $1.5B Equity to Fund JDE Peet's Takeover Plan
Equity Upsize and Investors
Financing Details and Deal Timeline
Feb 23 (Reuters) - Keurig Dr Pepper said on Monday it had raised an additional $1.5 billion of equity funding from long-term investors as part of its financing plan for the roughly $18 billion acquisition of Dutch coffee giant JDE Peet's.
No Partial Listing for Beverage Co
The company added that it was no longer considering a partial public listing of the beverages unit, which was one of the two companies Keurig Dr Pepper planned to carve out after the merger.
Closing Expected in Early April
Deal Timeline and Separation Plan
It now expects the deal to close in early April, and targets a planned split of its combined business into Global Coffee Co and Beverage Co by the end of the year.
Acquisition Background and Strategy
Keurig Dr Pepper had first announced plans to buy JDE Peet's in August last year to take on industry leader Nestle and tackle high commodity costs.
Target Leverage ~4.5x
Leverage and Debt Outlook
The additional financing allowed the company to cut its projected debt level to about 4.5 times earnings after the acquisition, down from about 4.6 times earnings it had expected in October when it said it raised $7 billion to fund the deal.
The latest funding was also led by Apollo and KKR0, with an early pledge from accounts advised by T. Rowe Price Investment Management, the company added.
Share Price Reaction
Shares of Keurig Dr Pepper have fallen about 15% since the deal was first announced and were largely unchanged in extended trading.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Maju Samuel)
