Ball Corporation sees strong early tender results for debt buyback

WESTMINSTER, Colo. – Ball Corporation (NYSE: NYSE:), a supplier of sustainable aluminum packaging solutions, has announced the early results of its cash tender offers for the buyback of its outstanding senior notes due in 2025 and 2026. The company revealed that a significant portion of these notes had been tendered by the early deadline on February 28, 2024.

The tender offers, which were launched on February 14, 2024, aimed to purchase $1 billion of the 5.25% senior notes due 2025 and $750 million of the 4.875% senior notes due 2026. As of the early tender deadline, holders of approximately $804 million of the 2025 notes and about $493 million of the 2026 notes had submitted their securities for purchase.

Holders who tendered their notes by the early deadline are eligible to receive the total consideration, which includes an early tender premium. Specifically, the total consideration for the 2025 notes is $1,000 per $1,000 principal amount, while the 2026 notes will receive $990.38 per $1,000 principal amount. In addition to the total consideration, tendering holders will receive accrued and unpaid interest up to the settlement date.

The tender offers are scheduled to expire on March 14, 2024, unless extended or terminated earlier by Ball Corporation. The company has chosen to settle the payments for notes tendered by the early deadline on February 29, 2024. Notes tendered after this deadline but before the final expiration will be eligible for the tender offer consideration, which is the total consideration minus the early tender premium.

Funding for the tender offers, including the total consideration, accrued interest, and related expenses, is expected to come from the net cash proceeds of the sale of Ball’s aerospace business, a transaction previously announced.

The successful early results of the tender offers reflect the investor response to Ball Corporation’s efforts to manage its debt. The offers are subject to certain conditions, and Ball reserves the right to amend, extend, or terminate the offers at its discretion.

Ball Corporation, with net sales of $14.03 billion in 2023, is known for its production of aluminum packaging for beverages, personal care, and household products. The company employs approximately 16,000 people worldwide, excluding those from the divested aerospace division.

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