Ball Corporation (BLL) has announced the completion of the previously announced underwritten public offering of 4% senior notes worth $1 billion, due 2023. Ball will use the proceeds from the offering to pay accrued and unpaid interest.
Ball Corp., which belongs to the containers and packaging industry, also intends to use the proceeds to pay fees and expenses in connection with the previously announced tender offer and all of its outstanding 7.125% Senior Notes due 2016. A part of the proceeds will also be used to repay the borrowings under Ball Corp.’s revolving credit facilities and Term A loan facility and for general corporate purposes.
Deutsche Bank Securities, Merrill Lynch – a subsidiary of Bank of America Corporation (BAC), Wells Fargo Securities, LLC – a unit of Wells Fargo & Company (WFC) and J.P. Morgan Securities LLC – a wing of JPMorgan Chase & Co. (JPM), were among the joint book-running managers of the offering.
Ball Corp. recorded long-term debt of $3.4 billion as of Mar 31, 2013, compared with $3.1 billion as of Apr 1, 2012. Cash flow from operating activities was $325 million as of Mar 31, 2013, versus $218 million as of Apr 1, 2012. Based on its strong liquidity position, Ball is expected to meet the ongoing cash and debt service requirements.
Ball Corp. retained its free cash flow guidance of about $450 million for full-year 2013 and maintained its long-term earnings per share growth target of 10% to 15%. It will continue to benefit from growth in its specialty beverage container business, introduction of new products, expansion in emerging markets and strong backlog in its aerospace and technologies segment.
Broomfield, Colo.-based Ball Corp. is the largest manufacturer of beverage cans in North America. It also supplies aerospace and other technologies and offers services to government and commercial customers.
Ball Corp. currently retains a short-term Zacks Rank #5 (Strong Sell).
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