Ball Corporation has raised US$750m through a bond offering of 5% senior notes due 15 March 2022.
Net proceeds from the offering are to predominantly be used to fund Ball’s cash tender offer for all of its outstanding US$450m of 6.625% senior notes…
Ball Corporation has raised US$750m through a bond offering of 5% senior notes due 15 March 2022.
Net proceeds from the offering are to predominantly be used to fund Ball’s cash tender offer for all of its outstanding US$450m of 6.625% senior notes due 2018. The remainder will be used for general corporate purposes.
BofA Merrill Lynch, Goldman Sachs, JP Morgan, Deutsche Bank and Barclays Capital are acting as joint book-running managers of the offering, which is expected to close on 9 March 2012.
Due to investor demand, the size of the offering has been increased by US$250m. The notes priced at par to yield 5% with a spread of 301bp over Treasuries.
Following the refinancing of the majority of its credit facilities in December 2010, Ball does not have any material maturities until its senior term loans and an untapped US$1bn multicurrency revolver mature in 2015. As of 31 December 2011, the company had US$3.85bn of total debt, approximately US$166m in cash and additional liquidity of up to US$275m through an accounts receivable securitisation program.
Ball’s aerospace business produces spacecraft, instruments, sensors, and other technologies that collect, gather, and process data. The business, which has historically represented about 10% of total sales, has picked up after a period of reduced government spending and a slowdown in new contract awards.
