Packaging
AMCOR ANNOUNCES SUCCESSFUL 550 MILLION BENCHMARK BOND ISSUE
Tuesday 08. March 2011 - Amcor announced today, the completion overnight of an eight year, one month 550 million Eurobond issue, with a 4.625 per cent annual coupon. Funding is expected to occur on 16 March 2011 with a maturity of 16 April 2019 and will be listed on the Singapore Stock Exchange (SGX-ST).
Amcors Executive Vice President, Finance, Mr Ron Delia said: “The issuance, the first to be conducted under Amcor’s recently signed Euro Medium Term Note Programme demonstrates Amcor’s access to European investors to support the Group’s significant European operations. The transaction is Amcor’s first since it undertook a stand-alone Eurobond issue in 2004 that matures later this month.
“This bond issue follows a European roadshow conducted last week. The issue was closed inside of an hour of launch. The strong demand reflects the high level of appetite at present for quality corporate paper. Amcor’s strong credit, business fundamentals and the success of the Alcan Packaging acquisition has proved a compelling story for investors.
“The order book for the bond closed early with the issue being more than four times oversubscribed. Demand came from a wide range of over 100 high quality fixed income investors, including fund managers, insurance companies and banks.”
Mr Delia said: “Issue proceeds will be left in Euro to refinance the maturing bond and existing floating rate bank debt. The bond will also lengthen the average maturity of Amcor’s debt portfolio.”
BNP Paribas and Deutsche Bank were joint lead managers on the bond issue.
Amcor has a long-term rating of BBB (stable outlook) by Standard & Poors and Baa2 (stable outlook) by Moodys.