Key Takeaways
- Keurig Dr Pepper has secured a new $4 billion revolving credit agreement.
- The deal with lenders, issuing banks, and administrative agent JPMorgan Chase replaces a previous agreement signed three years ago.
- Keurig Dr Pepper said the cash from this agreement “may be used for general corporate purposes and working capital.”
Keurig Dr Pepper (KDP) shares traded near their 2025 highs as the company behind the two iconic drink brands signed a new revolving credit agreement that provides for $4 billion.
The company wrote in a regulatory filing that the money “may be used for general corporate purposes and working capital.”
The deal with Keurig Dr Pepper’s lenders, issuing banks, and JPMorgan Chase as administrative agent, replaces a similar agreement the company made in February 2022. The new one matures in March 2030.
Keurig Dr. Pepper’s Costs Have Been Growing
The extra cash will come as the company’s costs have been growing. In February, Keurig Dr. Pepper reported fourth-quarter selling, general, and administrative expenses (SG&A) rose more than 3% year-over-year to $1.30 billion, and it posted a net loss of $144 million.
CEO Tim Cofer noted that to preserve profit and the ability to reinvest, Keurig Dr Pepper raised prices in January to meet escalating green coffee costs. However, he warned that those coffee costs have continued to increase, and the company may need to boost prices further.
Keurig Dr Pepper shares, which rose about 2% in late-morning trading Tuesday, are up more than 8% in 2025.
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