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DR PEPPER/SEVEN-UP COMPANIES FILES OFFERING; RECAPITALIZATION PLAN WILL RETIRE DEBT AND PREFERRED STOCK AND CREATE NEW SUBSIDIARY

DR PEPPER/SEVEN-UP COMPANIES FILES OFFERING; RECAPITALIZATION PLAN
 WILL RETIRE DEBT AND PREFERRED STOCK AND CREATE NEW SUBSIDIARY
 DALLAS, Sept. 17 /PRNewswire/ -- Dr Pepper/Seven-Up Companies, Inc. today announced that it has filed a registration statement with the Securities and Exchange Commission relating to the public offering of senior subordinated discount notes.
 Total proceeds of the offering to the company are expected to be approximately $375 million before the underwriting discount and related expenses. Together with approximately $826 million in borrowings under a new bank credit facility and approximately $171 million of cash on hand, the proceeds of the offering will be applied to effect a recapitalization plan pursuant to which the company intends to retire substantially all the outstanding indebtedness of the company and its subsidiaries and the preferred stock of the company's subsidiaries and pay the related fees and expenses of the transaction.
 Managing underwriters for the offering are BT Securities Corporation and Prudential Securities Incorporated.
 The objective of the recapitalization plan is to reduce interest expense, retire preferred stock and reduce associated dividend requirements. Concurrently with the retirement of outstanding debt and preferred stock, the company intends to merge its two operating subsidiaries, Dr Pepper Company and The Seven-Up Company, into one operating subsidiary to be renamed Dr Pepper/Seven-Up Corporation.
 As part of the recapitalization plan, Dr Pepper intends to initiate tender offers for its 11-1/2 percent guaranteed senior secured notes due 1996 and its $1.375 senior exchangeable preferred stock. Dr Pepper will also solicit consents for an amendment to the indenture governing the Dr Pepper 11-1/2 percent guaranteed senior secured notes due 1996. Dr Pepper expects to commence the tender offers and consent solicitation as soon as practicable. Prudential Securities and BT Securities have been retained by Dr Pepper as dealer managers for the tender offers and the consent solicitation.
 Consummation of the recapitalization plan is subject to the satisfaction of various conditions including completion of the senior subordinated discount note offering and the new bank financing.
 Dr Pepper/Seven-Up Companies, Inc. is the third largest producer of soft drink concentrates in the United States. Through is operating subsidiaries, the company manufactures, sells and distributes soft drink extracts, concentrates and fountain syrups. DR PEPPER, formulated in 1885, is the oldest nationally distributed soft drink brand. 7UP has been a market leader in the lemon-lime category of the soft drink industry for more than 60 years.
 -0- 9/17/92
 /CONTACT: Jim Ball, 214-360-7813, or Tom Bayer, 214-360-7817, both of Dr Pepper/Seven-Up/ CO: Dr Pepper/Seven-Up Companies, Inc. ST: Texas IN: FOD SU: OFR


AH -- NY042 -- 0589 09/17/92 11:15 EDT
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Publication:PR Newswire
Date:Sep 17, 1992
Words:441
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