Ball Corporation Completes Previously Announced Redemption of its 6.75% Senior Notes due 2020 and 5.75% Senior Notes due 2021
March 23, 2015
BROOMFIELD, Colo., March 23, 2015 /PRNewswire/ -- Ball Corporation (NYSE: BLL) announced today that on March 21, 2015, it completed the previously announced redemption of all of its outstanding 6.75% Senior Notes due 2020 (CUSIP No. 058498 AP1) (the "2020 Notes") issued pursuant to the Fourth Supplemental Indenture, dated as of March 22, 2010, by and among Ball, the subsidiary guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee") and all of its outstanding 5.75% Senior Notes due 2021 (CUSIP No. 058498 AQ9) (the "2021 Notes" and, together with the 2020 Notes, the "Notes") issued pursuant to the Fifth Supplemental Indenture, dated as of November 18, 2010, by and among Ball, the subsidiary guarantors named therein and the Trustee (the "Fifth Supplemental Indenture").
The 2020 Notes were redeemed at a redemption price of 103.375% of the principal amount of the 2020 Notes outstanding plus accrued and unpaid interest to the redemption date of March 21, 2015, payable in cash. The 2021 Notes were redeemed at a redemption price of 100% of the principal amount of the 2021 Notes outstanding plus the Applicable Premium (as defined in the Fifth Supplemental Indenture) as of, and accrued and unpaid interest to, the redemption date of March 21, 2015, payable in cash.
As of the redemption date, $500 million principal amount of the 2020 Notes and $500 million principal amount of the 2021 Notes remained outstanding. On and after the redemption date, the Notes called for redemption were no longer deemed outstanding and interest ceased to accrue.
Ball used cash on hand and borrowings under its existing bank credit facilities and accounts receivable securitization program to fund these redemptions. As a result of the redemption of the Notes, Ball will record a pre-tax charge of approximately $55.8 million in the first quarter of 2015.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, including the Notes.
About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2014 sales of $8.6 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; customer and supplier consolidation, power and supply chain influence; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt; and successful or unsuccessful acquisitions and divestitures, including, with respect to the proposed Rexam PLC acquisition, the effect of the announcement of the acquisition on our business relationships, operating results and business generally; the occurrence of any event or other circumstances that could give rise to the termination of our definitive agreement with Rexam PLC in respect of the acquisition; the outcome of any legal proceedings that may be instituted against us related to the definitive agreement with Rexam PLC; and the failure to satisfy conditions to completion of the acquisition of Rexam PLC, including the receipt of all required regulatory approvals.
SOURCE Ball Corporation