Ball Corporation completed the closing of its new $2.548 billion revolver and term loan senior secured credit facilities. According to the related 8-K filing, Deutsche Bank, New York Branch served as administrative agent and collateral agent on the transaction.
The facilities refinanced the company’s existing senior secured credit facilities entered into on March 18, 2016 and included a U.S. dollar revolving facility, a multicurrency revolving facility and a U.S. dollar term loan facility that will mature in 2024.
Ball intends to use net proceeds from these credit facilities to refinance its existing senior secured credit facilities and for general corporate purposes.
Borrowings under the amended agreement will bear interest at a rate per annum equal to, at Ball’s option, the 1, 2, 3 or 6 month, or, subject to certain conditions, 12 month or any period less than one month LIBOR rate plus a margin based on the net leverage ratio of Ball, which varies from 1.00% to 1.50% or a base rate plus a margin based on the net leverage ratio of the company, which varies from 0.00% to 0.50%.
Outstanding term loans under the new facility are payable in equal installments of $4,984,375 on the last business day of each of the first eight full fiscal quarters occurring after March 25, 2019 commencing with the fiscal quarter ending June 30, 2019 and subsequently in equal installments of $14,953,125 on the last business day of each of the following full fiscal quarters commencing with the fiscal quarter ending June 30, 2021.
Commitments and loans outstanding under the new agreement may be voluntarily reduced or prepaid without premium or penalty other than payment of customary breakage costs.
“These new credit facilities represent attractive financing from a diverse bank syndicate, as well as the flexibility to execute future corporate actions,” said Scott C. Morrison, senior vice president and chief financial officer. “Our solid balance sheet and recent financings provide us with a very competitive, long-term capital structure to generate value for our shareholders in 2019 and beyond.”
Ball 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. The company employs 17,500 people worldwide and reported 2018 sales of $11.6 billion.
