) 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.
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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
), Wells Fargo Securities, LLC - a unit of
Wells Fargo & Company
) and J.P. Morgan Securities LLC - a wing of
JPMorgan Chase & Co.
), 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
Ball Corp. currently retains a short-term Zacks Rank #5 (Strong