Smurfit Kappa has announced that it has completed the pricing of an offering of approximately €440m equivalent of senior secured notes.
The notes will be issued by its wholly owned subsidiary Smurfit Kappa Acquisitions.
The group is one of the world’s largest integrated manufacturers of paper-based packaging products, with operations in Europe and Latin America.
The reason for the offering is to use the net proceeds to repay all of the existing 7.75% senior subordinated notes due 2015 that were issued by Smurfit Kappa Funding on January 31 2005 and to pay certain fees and expenses related to the offering.
In a statement, Smurfit Kappa said "Any excess proceeds will be used to repay term loans outstanding under the Group's senior credit facility. The notes are being offered in a private placement and there will be no public offering of the notes."
It added that the notes will be issued in two series: €200m of euro denominated senior secured notes due 2018 and $300m of US dollar senior secured notes due 2018.
The notes priced at issue prices of 100% plus accrued interest, if any, from September 12 2012 and yields of 5.125% and 4.875%, respectively.
The closing of the sale of the notes is scheduled to be completed on September 12 2012, and is subject to customary conditions.
