Ball starts any-and-all cash tender offer for notes due 2025, 2026

By William Gullotti

Buffalo, N.Y., Feb. 14 – Ball Corp. is inviting holders of two series of notes to tender their notes for purchase for cash, according to a press release on Wednesday.

Ball is offering to purchase any and all of the notes from the following series:

• $1 billion 5¼% senior notes due 2025 (Cusip: 058498AT3) with pricing based on the 4 5/8% U.S. Treasury due June 30, 2025 and a fixed spread of 50 basis points; and

• $750 million 4 5/8% senior notes due 2026 (Cusip: 058498AV8) with pricing based on the 4 5/8% U.S. Treasury due March 15, 2026 and a fixed spread of 70 bps.

The total consideration includes a $30 early tender premium for each $1,000 of notes tendered on or before the early tender deadline.

In addition to the purchase price, the issuer will also pay accrued interest.

Pricing will be determined at 10 a.m. ET on Feb. 28.

The early tender deadline, which is also the withdrawal deadline, is 5 p.m. ET on Feb. 28.

Early settlement is expected Feb. 29.

The tender offers will expire at 5 p.m. ET on March 14, with final settlement expected March 15.

The tender offer is expected to be paid with funds from the sale of Ball’s aerospace business.

The dealer managers are BNP Paribas Securities Corp. (212 841-3059; 888 210-4358; dl.us.liability.management@us.bnpparibas.com) and Morgan Stanley & Co. LLC (212 761-1057; 800 624-1808; debt_advisory@morganstanley.com).

D.F. King & Co., Inc. (866 796-1291; ball@dfking.com) is the tender agent and information agent.

Ball is a Broomfield, Colo.-based provider of packaging solutions for beverage, food and household products customers as well as aerospace and other technologies and services primarily for the U.S. government.

© 2015 Prospect News.
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