A thirsty junk bond market soaked up Dr. Pepper Co.'s much-anticipated $200 million offering, despite what some called "rich" pricing.
The deal contained fixed- and floating-rate tranches totaling $200 million. The fixed-rate portion consisted of $150 million of senior secured notes, due 1996. The notes were priced at par to yield 11.50%, or 425 basis points over comparable Treasuries. Moody's Investors Service assigned the offering a B3 rating, while Standard & Poor's Corp. gave it a B. BT Securities Corp., a Banker's Trust Corp. affiliate, managed the deal.