JAB Holdings launches exchange offers for four series of notes

By Marisa Wong

Los Angeles, April 14 – JAB Holdings BV announced offers to exchange its existing notes from four series for up to €1 billion of new euro-denominated senior fixed-rate notes.

Specifically, the company is offering to exchange the following securities:

• €475.8 million outstanding of its €750 million 1.5% notes due Nov. 24, 2021 (ISIN: DE000A1ZSAF4) at an exchange price based on a yield of negative 0.5%;

• €524 million outstanding of its €750 million 2.125% notes due Sept. 16, 2022 (ISIN: DE000A1Z6C06) at an exchange price based on a yield of negative 0.45%;

• €642 million outstanding of its €900 million 1.75% notes due May 25, 2023 (ISIN: DE000A181034) at an exchange price based on a yield of negative 0.4%; and

• €664.5 million outstanding of its €750 million 1.25% notes due May 22, 2024 (ISIN: DE000A19HCW0) at an exchange price based on a yield of negative 0.2%.

The new notes are expected to have a tenor of 10 years and will be issued at par to yield mid-swaps plus 110 basis points, subject to a minimum yield of 1.158%.

Pricing of the new notes will be announced no later than April 28. The issuer will announce exchange offer pricing and results shortly after that.

The exchange offers are conditioned on the issuance of a minimum of €300 million of new securities.

The exchange offers will expire at 11 a.m. ET on April 27. Settlement is expected to occur on May 5.

The company said the purpose of the exchange offers and the issuance of new notes is to optimize its cost of debt, reduce its cost of carry, manage refinancing risk and extend its debt maturity profile.

The dealer managers for the exchange offers are BNP Paribas (+33 1 55 77 78 94, liability.management@bnpparibas.com), Credit Agricole CIB (+44 207 214 5733, liability.management@ca-cib.com), HSBC Continental Europe (+44 20 7992 6237, LM_EMEA@hsbc.com), MUFG Securities (Europe) NV (+44 20 7577 4218, liability.management@mufgsecurities.com), Santander CIB (+44 7418 709 688, +44 7742 403 679, Tommaso.GrosPietro@santanderCIB.co.uk, Adam.Crocker@santandercib.co.uk) and SMBC Nikko Capital Markets Europe GmbH (+44 20 3527 7545, LM.EMEA@smbcnikko-cm.com).

Lucid Issuer Services Ltd. (+44 20 7704 0880, jab@lucid-is.com) is the exchange agent.

JAB Holdings is a subsidiary of Luxembourg-based investment conglomerate JAB Holding. JAB owns brands including Keurig Dr Pepper, Krispy Kreme and Panera Bread.

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