Smurfit Kappa Group PLC Completion of a Senior Notes Offering (3627M)
September 16 2019 - 9:07AM
UK Regulatory
TIDMSKG
RNS Number : 3627M
Smurfit Kappa Group PLC
16 September 2019
Statement re Completion of a Senior Notes Offering
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA, THE UNITED STATES OF AMERICA OR ANY
OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.
Smurfit Kappa Announces Completion of EUR750m Senior Notes
Offering
Dublin, London, 16 September 2019: Smurfit Kappa Group plc
("Smurfit Kappa" or the "Group") today announces that it has
successfully completed an offering by one of its wholly-owned
subsidiaries, Smurfit Kappa Treasury Unlimited Company, of EUR750
million of euro-denominated senior notes due 2027 (the ÒOfferingÓ).
The notes priced at par and have a coupon of 1.50%.
The Group intends to use the proceeds from the Offering,
together with cash on hand, to (i) redeem in full the Senior
Floating Rate Notes due 2020, issued by Smurfit Kappa Acquisitions
Unlimited Company ("SKA") pursuant to an indenture dated 21
September 2012 (the "2020 Notes"), and pay accrued but unpaid
interest thereon, (ii) redeem in full the 3.25% Senior Notes due
2021, issued by SKA pursuant to an indenture dated 3 June 2014 (the
"2021 Notes"), and pay accrued but unpaid interest thereon and
(iii) pay fees and expenses related to the Offering.
The redemption in full of the 2020 Notes and the redemption of
EUR250 million in aggregate principal amount of the 2021 Notes are
currently expected to occur on 2 October 2019. The redemption of an
additional EUR250 million in aggregate principal amount of the 2021
Notes is currently expected to occur on 3 October 2019.
Paul Regan, Smurfit Kappa Group Treasurer: "We are pleased to
announce the completion of our upsized EUR750 million Senior Notes
Offering at a record low coupon of 1.50% for the Group. Given the
strength of institutional demand, we increased the offering from
our initial target size of EUR500 million. This transaction, which
demonstrates the strong credit profile of the Group, further
reduces our interest cost and extends our debt maturity
profile."
About Smurfit Kappa
Smurfit Kappa, a FTSE 100 company, is one of the leading
providers of paper-based packaging solutions in the world, with
around 46,000 employees in over 350 production sites across 35
countries and with revenue of EUR8.9 billion in 2018. We are
located in 23 countries in Europe, and 12 in the Americas. We are
the only large-scale pan-regional player in Latin America.
With our pro-active team, we relentlessly use our extensive
experience and expertise, supported by our scale, to open up
opportunities for our customers. We collaborate with
forward-thinking customers by sharing superior product knowledge,
market understanding and insights in packaging trends to ensure
business success in their markets. We have an unrivalled portfolio
of paper-packaging solutions, which is constantly updated with our
market-leading innovations. This is enhanced through the benefits
of our integration, with optimal paper design, logistics,
timeliness of service, and our packaging plants sourcing most of
their raw materials from our own paper mills.
Our products, which are 100% renewable and produced sustainably,
improve the environmental footprint of our customers.
smurfitkappa.com
Check out our microsite: openthefuture.info
Follow us on Twitter at @smurfitkappa and on LinkedIn at
'Smurfit Kappa'.
Forward-Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable. However, because
they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual
results or performance may differ materially from those expressed
or implied by such forward-looking statements.
Important Notice
THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY, AND DOES
NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR
ISSUE, OR ANY SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE
FOR, ANY SECURITIES OF SMURFIT KAPPA TREASURY UNLIMITED COMPANY IN
THE UNITED STATES OR ANY OTHER JURISDICTION; SECURITIES MAY NOT BE
OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN
EXEMPTION FROM REGISTRATION. NOT FOR DISTRIBUTION OR RELEASE IN OR
INTO ANY JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED
BY APPLICABLE LAW.
This announcement is directed only at persons who are: located
outside the United States and are (a) persons in member states of
the European Economic Area (the "EEA"), other than the United
Kingdom, who are qualified investors (within the meaning of Article
2(1)(e) of the Prospectus Regulation (Regulation (EU) 2017/1129 (as
may be amended or superseded)) and any relevant implementing
measure in each member state of the EEA); (b) persons in the United
Kingdom who are qualified investors and who are (i) investment
professionals falling within Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
"Order"); or (ii) persons falling within Article 49(2) (a) to (d)
("high net worth companies, unincorporated associations, etc.") of
the Order; or (c) persons to whom it may otherwise be lawfully
communicated (all such persons together being referred to as
"relevant persons"). This announcement must not be acted on or
relied on by persons who are not relevant persons. Any investment
or investment activity to which this announcement relates is
available only to relevant persons and will be engaged in only with
relevant persons.
MiFID II professionals/ECPs-only/No PRIIPs KID. Manufacturer
target market (MIFID II product governance) is eligible
counterparties and professional clients only (all distribution
channels). No PRIIPs key information document (KID) has been
prepared as not available to retail in EEA.
ENDS
Contacts:
Garrett Quinn Jonathan Neilan
Smurfit Kappa FTI Consulting
T: +353 1 202 71 80 T: +353 765 08 00
E: ir@smurfitkappa.com E: smurfitkappa@fticonsulting.com
This information is provided by RNS, the news service of the
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END
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