Updated: 1-Keurig Dr Pepper plans to issue $2 billion in stock to reduce debt and prepare for a spin-off

Updated first paragraph to add pricing details

Reuters, November 13 - Keurig Dr Pepper KDP.O said on Thursday it has priced its nearly 58 million publicly offered shares at $34.50 per share, raising about $2 billion. The beverage maker is planning to split into two listed companies early next year, a move aimed at reducing debt ahead of that split.

• Keurig Dr Pepper announced last year that it will (link) split into two independent companies—Beverage Co. and Global Coffee Co.—with the deal expected to complete in early 2027

• The company said on Thursday it plans to use the net proceeds from this fundraise to repay or buy back about $2 billion in outstanding debt

• The company added that it will grant underwriters a 30-day option to purchase up to an additional $300 million in shares at the offering price

• Goldman Sachs and Morgan Stanley are joint bookrunners for the offering

• According to its latest quarterly report, as of September 30, 2026, Keurig Dr Pepper reported long-term debt (excluding capitalized leases) of about $21.06 billion

• Keurig completed (link) its $18 billion acquisition of Dutch coffee and tea company JDE Peet's in April

• Last week, Keurig said it expects profit growth in its U.S. coffee business to slow in the fourth quarter (link), mainly due to cautious consumer spending and increased competition from private companies

• The company’s shares fell about 4% in premarket trading

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