Ball Corp. driving by with $750 million notes for debt refinancing; initial talk low 7% area

By Paul A. Harris

Portland, Ore., Nov. 9 – Ball Corp. plans to price a $750 million public offering of senior notes due March 15, 2028 (expected Ratings Ba1/BB+) in a Wednesday drive-by, according to market sources.

The deal, which was scheduled to kick off on a Wednesday morning conference call with investors, is in the market with initial guidance in the low 7% area, a sellside source said.

The notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period, as well as a 101% poison put.

BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are the joint active bookrunners.

BNP Paribas Securities Corp., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Rabo Securities USA Inc., SMBC Nikko Securities America Inc. and UniCredit Capital Markets LLC are joint bookrunners.

Credit Agricole CIB, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., KeyBanc Capital Markets Inc., TD Securities (USA) LLC, Academy Securities Inc., Barclays, Capital One Securities Inc., HSBC Securities (USA) Inc. and Huntington Securities Inc. are the co-managers.

Deutsche Bank Trust Co. Americas is the trustee, according to a 424B5 filing with the Securities and Exchange Commission.

The issuer is using in-house counsel and also Skadden, Arps, Slate, Meagher & Flom LLP. Counsel to the underwriters is provided by Latham & Watkins LLP.

The Broomfield, Colo.-based packaging products supplier plans to use the proceeds to repay approximately $528 million of its outstanding 4 3/8% euro-denominated senior notes on or before their maturity in December 2023 and approximately $200 million under its dollar-denominated revolver.

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