Apollo Co-Leads $4.5B Convertible Preferred Upsize for Keurig Dr Pepper Acquisition
Apollo Global Management co-led an upsized $4.5B convertible preferred equity investment in Keurig Dr Pepper’s planned Beverage Co., increasing its commitment by $1.5B alongside KKR and T. Rowe Price. The financing supports a $9B debt and $8.5B equity deal to acquire JDE Peet’s with projected net leverage of 4.5x.
1. Upsized Convertible Preferred Equity Investment
Apollo Global Management and KKR increased their combined preferred equity investment in the upcoming Beverage Co. from $3B to $4.5B, with accounts advised by T. Rowe Price also participating. The instrument carries a 4.75% dividend and $37.25 initial conversion price per share.
2. Impact on Deal Financing
The acquisition of JDE Peet’s will be financed with approximately $9B long-term debt, $8.5B equity capital and assumption of $5B bonds, targeting net leverage of 4.5x. The upsized equity tranche eliminates the need for a Beverage Co. IPO.
3. Global Coffee Co. Joint Venture Participation
Apollo is co-leading a $4B joint venture for pod manufacturing alongside KKR and Goldman Sachs Alternatives, supporting the future Global Coffee Co.’s capital structure. Final agreements align with terms announced in October 2025.