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Investing.com -- Keurig Dr Pepper Inc. is exploring the possibility of selling debt in the European bond market to finance part of its $18.4 billion acquisition of JDE Peet’s NV, Bloomberg reports.
During a call with investors and analysts discussing the acquisition, Chief Financial Officer Sudhanshu Priyadarshi indicated that the company will determine how to structure the debt issue and where to sell it in the coming months.
"Part of our consideration is that Europe has a lower interest-rate regime than the US," Priyadarshi said. "And post-acquisition, we expect JDE Peet’s to remain investment-grade."
The beverage company agreed on Monday to purchase JDE Peet’s for €15.7 billion ($18.4 billion) to strengthen its business before dividing its coffee and soft-drink divisions into two separate publicly traded companies.
Keurig Dr Pepper plans to fund the transaction through a combination of new senior unsecured and junior subordinated debt along with cash on hand, according to a company statement. A debt sale will likely refinance a €16.2 billion ($19.0 billion) bridge loan connected to the purchase.
Companies have increasingly been looking to Europe to raise money at lower costs, a trend that has supported the US corporate debt market by reducing supply.
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