Ball still on course for Schmalbach buy
for consentfrom its senior note holders to launch a $200 million
(€201.5m) offering of senior notes with a maturity of 10 years, in
connection with its proposed acquisition of Schmalbach-Lubeca.
Ball Corporation, the US packaging group has said that it will ask for consentfrom its senior note holders to launch a $200 million (€201.5m) offering of senior notes with a maturity of 10 years, in connection with its proposed acquisition of Schmalbach-Lubeca.
Ball and Schmalbach announced on August 29 that the twocompanies had signed a definitive agreement for Ball to acquireSchmalbach-Lubeca. The acquisition is expected to be financed withproceeds from new Ball credit facilities and other borrowings. Amending theexisting indentures will permit Ball to own and operate Schmalbach and otherforeign operations in a more tax efficient manner, Ball said.
Completion of the Schmalbach acquisition is conditional upon, among other things, Ball's obtaining the necessary financing for the acquisition, but does not requirereceipt of the consents needed to amend the indentures. The transaction isexpected to close in December 2002.
The procedure for the senior note holders consent began this week and is set to close on 3 December.
Ball is negotiating to buy the German beverage-container maker for about $805 million, in a deal meant to secure a second-place market position in Europe. Ball will also assume about $15.7 million in debt with the transaction.
In 2001, Ball posted operating earnings of $104 million on sales of $3.69 billion.
Ball is one of the world's leading suppliers of metal andplastic packaging to the beverage and food industries. The company also ownsBall Aerospace & Technologies Corp.