Keurig Dr Pepper Will get New $4 Billion Revolving Credit score Line

Key Takeaways

• Keurig Dr Pepper has secured a brand new $4 billion revolving credit score settlement.
• The take care of lenders, issuing banks, and administrative agent JPMorgan Chase replaces a earlier settlement signed three years in the past.
• Keurig Dr Pepper stated the money from this settlement "could also be used for normal company functions and dealing capital."

Keurig Dr Pepper (KDP) shares traded close to their 2025 highs as the corporate behind the 2 iconic drink manufacturers signed a brand new revolving credit score settlement that gives for $4 billion.

The corporate wrote in a regulatory submitting that the cash "could also be used for normal company functions and dealing capital."

The take care of Keurig Dr Pepper's lenders, issuing banks, and JPMorgan Chase as administrative agent, replaces an analogous settlement the corporate made in February 2022. The brand new one matures in March 2030. 

Keurig Dr. Pepper's Prices Have Been Rising

The additional money will come as the corporate’s prices have been rising. In February, Keurig Dr. Pepper reported fourth-quarter promoting, normal, and administrative bills (SG&A) rose greater than 3% year-over-year to $1.30 billion, and it posted a internet lack of $144 million.

CEO Tim Cofer famous that to protect revenue and the power to reinvest, Keurig Dr Pepper raised costs in January to fulfill escalating inexperienced espresso prices. Nonetheless, he warned that these espresso prices have continued to extend, and the corporate might have to spice up costs additional.

Keurig Dr Pepper shares, which rose about 2% in late-morning buying and selling Tuesday, are up greater than 8% in 2025.