Keurig Dr Pepper announces sale of up to 100M shares of common stock by JAB

Keurig Dr Pepper announced that a subsidiary of JAB Holding Company will sell an aggregate of 86,956,522 shares through a secondary offering. JAB has also granted an option to the underwriter to purchase up to an additional 13,043,478 shares for a period of 30 days following the date of this offering. KDP has indicated its intent to repurchase an aggregate of 35M shares in this offering at the per share price to be paid by the underwriter in the offering. The Repurchase is being effected under its previously announced $4 billion repurchase authorization of which approximately $1.8B will remain outstanding following the offering. As part of the offering, certain directors and officers of KDP have indicated an interest to purchase KDP shares. Following the completion of the offering, assuming full exercise of the underwriter’s option to purchase additional shares, JAB will beneficially own approximately 21% of KDP’s outstanding common stock, giving effect to the Repurchase, bringing KDP’s public float to approximately 79%. Under the terms of the transaction, the remaining shares beneficially owned by JAB will be subject to a 180 day lock-up agreement with the underwriter. Morgan Stanley is acting as the underwriter for the proposed secondary offering.