Keurig Dr Pepper Inc.
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Long-Term Obligations and Borrowing Arrangements
- Long-term Obligations and Borrowing Arrangements
The following table summarizes our long-term obligations:
| (in millions) | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Notes | $14,419 | $12,948 |
| Term loan | — | 990 |
| Less: current portion of long-term obligations | (499) | (1,026) |
| Long-term obligations | $13,920 | $12,912 |
The following table summarizes our short-term borrowings and current portion of long-term obligations:
| (in millions) | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Commercial paper notes | $1,477 | $1,616 |
| Current portion of long-term obligations: | ||
| Notes | 499 | 1,026 |
| Short-term borrowings and current portion of long-term obligations | $1,976 | $2,642 |
SENIOR UNSECURED NOTES
| (in millions, except %) · Maturity Date · Rate · June 30, 2025 · December 31, 2024 | |||||
|---|---|---|---|---|---|
| 2025 Merger Notes | May 25, 2025 | 4.417% | $— | $529 | |
| 2025 Notes | November 15, 2025 | 3.400% | 500 | 500 | |
| 2026 Notes | September 15, 2026 | 2.550% | 400 | 400 | |
| 2026-B Notes | November 15, 2026 | Floating(2) | 500 | — | |
| 2027-B Notes | March 15, 2027 | Floating(2) | 350 | 350 | |
| 2027-C Notes | March 15, 2027 | 5.100% | 750 | 750 | |
| 2027 Notes | June 15, 2027 | 3.430% | 500 | 500 | |
| 2028 Notes | May 15, 2028 | 4.350% | 500 | — | |
| 2028 Merger Notes | May 25, 2028 | 4.597% | 1,112 | 1,112 | |
| 2029-B Notes | March 15, 2029 | 5.050% | 750 | 750 | |
| 2029 Notes | April 15, 2029 | 3.950% | 1,000 | 1,000 | |
| 2030 Notes | May 1, 2030 | 3.200% | 750 | 750 | |
| 2030-B Notes | May 15, 2030 | 4.600% | 500 | — | |
| 2031 Notes | March 15, 2031 | 2.250% | 500 | 500 | |
| 2031-B Notes | March 15, 2031 | 5.200% | 500 | 500 | |
| 2032 Notes | April 15, 2032 | 4.050% | 850 | 850 | |
| 2034 Notes | March 15, 2034 | 5.300% | 650 | 650 | |
| 2035 Notes | May 15, 2035 | 5.150% | 500 | — | |
| 2038 Merger Notes | May 25, 2038 | 4.985% | 211 | 211 | |
| 2045 Notes | November 15, 2045 | 4.500% | 550 | 550 | |
| 2046 Notes | December 15, 2046 | 4.420% | 400 | 400 | |
| 2048 Merger Notes | May 25, 2048 | 5.085% | 391 | 391 | |
| 2050 Notes | May 1, 2050 | 3.800% | 750 | 750 | |
| 2051 Notes | March 15, 2051 | 3.350% | 500 | 500 | |
| 2052 Notes | April 15, 2052 | 4.500% | 1,150 | 1,150 | |
| Principal amount | 14,564 | 13,093 | |||
| Adjustment from principal amount to carrying amount(1) | (145) | (145) | |||
| Carrying amount | $14,419 | $12,948 | |||
(1)The carrying amount includes unamortized discounts, debt issuance costs, and fair value adjustments related to the DPS Merger.
(2)Our floating rate notes bear interest at a rate equal to Compounded SOFR (as defined in the respective supplemental indenture) plus a spread of 0.580% and 0.880% for the 2026-B Notes and the 2027-B Notes, respectively.
On May 5, 2025, we completed the issuance of the 2026-B Notes, 2028 Notes, 2030-B Notes, and 2035 Notes, with an aggregate principal amount of $2 billion. The discount associated with these notes was approximately $4 million, and we incurred $10 million in debt issuance costs. The proceeds from the issuance were used for the repayment of outstanding commercial paper borrowings.
The 2025 Merger Notes were repaid at maturity using proceeds from commercial paper.
VARIABLE-RATE BORROWING ARRANGEMENTS
Term Loan Agreement
On January 31, 2025, we repaid the amount outstanding under the Term Loan Agreement using proceeds from commercial paper. On May 7, 2025, we terminated our Term Loan Agreement. We had no outstanding loan balances as of the termination date.
Revolving Credit Agreement
On March 31, 2025, we entered into the 2025 Revolving Credit Agreement among KDP, as borrower, the lenders and issuing banks party thereto, and JPMorgan Chase, Bank, N.A., as administrative agent. We incurred approximately $4 million in deferred financing fees related to the issuance.
The following table summarizes information about the 2025 Revolving Credit Agreement:
| Amounts Outstanding | ||||
|---|---|---|---|---|
| (in millions) | Maturity Date | Capacity | June 30, 2025 | December 31, 2024 |
| 2025 Revolving Credit Agreement(1) | March 31, 2030 | $4,000 | $— | $— |
(1)The 2025 Revolving Credit Agreement has a $200 million letter of credit limit, with none utilized as of June 30, 2025.
The 2025 Revolving Credit Agreement replaced our previous revolving credit agreement.
Borrowings under the 2025 Revolving Credit Agreement will bear interest at a rate per annum equal to, at our option, the term SOFR rate plus a margin of 0.750% to 1.250% or the alternative base rate plus a margin ofzero to 0.250%, in each case, depending on the rating of certain of our index debt. The 2025 Revolving Credit Agreement contains customary representations and warranties for investment grade financings. The 2025 Revolving Credit Agreement also contains (i) certain customary affirmative covenants, including those that impose certain reporting and/or performance obligations on us and our subsidiaries, (ii) certain customary negative covenants that generally limit, subject to various exceptions, us and our subsidiaries from taking certain actions, including, without limitation, incurring liens and consummating certain fundamental changes, (iii) a financial covenant in the form of a minimum interest coverage ratio of 3.25 to 1.00, and (iv) customary events of default (including a change of control) for financings of this type.
As of June 30, 2025, we were in compliance with our minimum interest coverage ratio with respect to the 2025 Revolving Credit Agreement.
Commercial Paper Program
| Second Quarter | First Six Months | |||
|---|---|---|---|---|
| (in millions, except %) | 2025 | 2024 | 2025 | 2024 |
| Weighted average commercial paper borrowings | $2,317 | $2,305 | $2,498 | $2,381 |
| Weighted average borrowing rates | 4.67% | 5.59% | 4.65% | 5.61% |
Letter of Credit Facility
In addition to the portion of the 2025 Revolving Credit Agreement reserved for issuance of letters of credit, we have an incremental letter of credit facility. Under this facility, $150 million is available for the issuance of letters of credit, $72 million of which was utilized as of June 30, 2025 and $78 million of which remains available for use.
FAIR VALUE DISCLOSURES
The fair value of our commercial paper approximates the carrying value and is considered Level 2 within the fair value hierarchy.
The fair values of our Notes are based on current market rates available to us and are considered Level 2 within the fair value hierarchy. The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all the Notes and related unamortized costs to be incurred at such date. The fair value of our Notes was $13,714 million and $12,036 million as of June 30, 2025 and December 31, 2024, respectively.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.