Ball Corporation Announces Issuance of Notices of Redemption for All of its 6.75% Senior Notes due 2020 and 5.75% Senior Notes due 2021

News provided by

Feb 19, 2015, 02:45 ET

BROOMFIELD, Colo., Feb. 19, 2015 /PRNewswire/ -- Ball Corporation (NYSE: BLL) announced today that it has issued notices of redemption for all of its outstanding 6.75% Senior Notes due 2020 (CUSIP No. 058498 AP1) (the "2020 Notes") issued pursuant to the Fourth Supplemental Indenture, dated as of March 22, 2010, by and among Ball, the subsidiary guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee") (the "Fourth Supplemental Indenture") and all of its 5.75% Senior Notes due 2021 (CUSIP No. 058498 AQ9) (the "2021 Notes" and, together with the 2020 Notes, the "Notes") issued pursuant to the Fifth Supplemental Indenture, dated as of November 18, 2010, by and among Ball, the subsidiary guarantors named therein and the Trustee (the "Fifth Supplemental Indenture" and, together with the Fourth Supplemental Indenture, the "Indentures"). The redemption date for the Notes is March 21, 2015. The redemption price for the 2020 Notes is 103.375% of the principal amount of the 2020 Notes outstanding plus accrued and unpaid interest to the redemption date, payable in cash. The redemption price for the 2021 Notes is 100% of the principal amount of the 2021 Notes outstanding plus the Applicable Premium (as defined in the Fifth Supplemental Indenture) as of, and accrued and unpaid interest to, the redemption date, payable in cash. Ball intends to use cash on hand and borrowings under its bank credit facilities and accounts receivable securitization program to fund the redemption.

As of the date hereof, $500 million principal amount of 2020 Notes and $500 million principal amount of the 2021 Notes remain outstanding. On and after the redemption date, the Notes will no longer be deemed outstanding and interest will cease to accrue, unless Ball defaults in making the redemption payment.

The notices of redemption containing information required by the Indentures were sent by the Trustee to registered holders of the Notes today. In accordance with the instructions specified in the notices of redemption, Notes are to be surrendered to The Bank of New York Mellon, as Trustee and paying agent, in exchange for payment of the applicable redemption price, which will be paid on March 21, 2015, as provided in the Indentures.

As a result of the redemption of the Notes, Ball will record a pre-tax charge of approximately $56.3 million in the first quarter of 2015.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, including the Notes.

About Ball Corporation
Ball Corporation 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. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2014 sales of $8.6 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.

Forward-Looking Statements
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; customer and supplier consolidation, power and supply chain influence; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; successful or unsuccessful acquisitions and divestitures; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt.

Logo - http://photos.prnewswire.com/prnh/20130925/LA85786LOGO

SOURCE Ball Corporation