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Amcor rejigs debt with $850m US bond issueJosh Brooks, 23 November 2009Be the first to comment on this article Australian packaging group Amcor is to raise $850m on the US markets in a bid to restructure part of its debt. The move by the company, which reported AUS$3.4bn of total net debt in the summer, is designed to pay off loans and extend the maturity dates for its debt. It said last week that it would accept bids for fixed coupon notes with maturities of seven, nine and 12 years, valued at $297m, $324m and $297m respectively. The company said it planned to use the funds, in part, to replace existing outstanding bank borrowings and the balance for general corporate purposes, although it did not specify further what this would involve. Amcor managing director and chief executive Ken MacKenzie said in a statement that the move was part of the company’s plan to diversify its sources of debt and lengthening the average tenure of its debt. News of the fundraising comes as Amcor is in the process of buying much of Alcan’s packaging business in a $2.025bn deal. It is understood that initial feedback on the deal from the European Commission and the US Department of Justice will be issued in the coming fortnight. The latest debt offering from Amcor follows a $1bn fundraising in August to pay for part of the Alcan deal. Click here for today’s headlines from across the packaging industry Speak Your Mind |
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