Ball Corporation, the parent company of Ball Aerospace & Technologies Corp, is out with a US$1bn bond offering.
The senior unsecured notes mature on 15 November 2023, pay a coupon of 4% and priced at par. The offering is expected to close on 16 May,…
Ball Corporation, the parent company of Ball Aerospace & Technologies Corp, is out with a US$1bn bond offering.
The senior unsecured notes mature on 15 November 2023, pay a coupon of 4% and priced at par. The offering is expected to close on 16 May, 2013, subject to market conditions and other factors.
Deutsche Bank, BofA Merrill Lynch, Goldman Sachs, Barclays, Wells Fargo, RBS, KeyBanc Capital Markets and JP Morgan are acting as joint book-running managers on the financing, which was upsized by US$400m following strong investor demand.
Ball stated that it intends to use a portion of the net proceeds from the offering to fund its tender offer to purchase all of its outstanding US$375m 7.125% Senior Notes due 2016.
The remaining proceeds will be used to repay borrowings under its revolving credit facility and term loan A, as well as for general corporate purposes.
At the end of the first quarter of 2013, Ball had US$494m of availability on its US$1bn multicurrency revolver that matures in 2015. The company also has approximately US$291m of term loans due in 2015.
Ball recently reported its Q1 2013 results with revenues down 2.5% year-on-year to US$1.99bn and EBITDA down 21.4% to US$143m. However, the company’s space subsidiary Ball Aerospace and Technologies Corp saw its revenues rise from US$201.6m in 2012 to US$231.4m in Q1 2013, EBITDA though fell by US$1.8m to US&17.9m.
The company argued that the earnings performance reflected timing impacts of programme starts in advance of the sequestration implementation. However, Ball Aerospace has contracted backlog levels exceeding US$1bn.
