Keurig Dr Pepper Alleviates Debt Concerns with Private Financing

about 2 months ago

Carol Masser

"this next name I was kind of surprised but it is like a top gainer in the major indices today. It is there is nothing like some private financing to come to the rescue. Kurig Dr. Pepper is raising $7 billion from Apollo and KKR to help fund its acquisition of JDE Pets. That's the maker of Pete's coffee and some other brands. This is meant to ease some of the investor concerns that they had around the company taking on too much debt. Uh Wall Street had expressed a lot of uh disappointment over Kurig's August announcement to buy the Dutch coffee company for about $18 billion. So this is alleviating some of those concerns. The stock had increased as much as 10% again uh pairing some of that gain about 7% right now. And it's had a really rough run up until today."

The speaker explains that Kurig Dr Pepper is using a $7 billion private financing package to mitigate debt concerns linked to its $18 billion acquisition of JDE Pets. The initiative has helped stabilize the stock, which had experienced a volatile run earlier.

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