June 9, 2011
/PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) today announced that it amended its existing senior secured credit facilities to add a
term loan facility and a
euro 274 million
term loan facility, each of which will mature on
June 9, 2016
and bear interest at LIBOR or EURIBOR plus 1.75%.
Borrowings under the new term loan facilities will be used to repay the Company's existing
euro 108 million
term loans, which were scheduled to mature on
November 15, 2012
and also bear interest at LIBOR or EURIBOR plus 1.75%, to redeem all of the Company's outstanding 6.25% first priority senior secured notes due
September 1, 2011
and for general corporate purposes.
In connection with the new term loan facilities, Crown European Holdings, SA, a wholly-owned subsidiary of the Company (the "Issuer") notified the holders of the Issuer's 6.25% First Priority Senior Secured Notes due 2011 (the "Notes") that it will redeem all of the outstanding Notes on
July 11, 2011
(the "Redemption Date"). Approximately
euro 83 million
aggregate principal amount of the Notes are currently outstanding. On the Redemption Date, the Issuer will pay to the holders of the Notes the total principal amount of the Notes plus the applicable make-whole premium (as calculated in accordance with the terms of the indenture governing the Notes) plus accrued and unpaid interest up to, but not including, the Redemption Date, totaling approximately
euro 86 million
. Payment of the redemption price will be made by The Bank of
on the Redemption Date upon presentation and surrender of the Notes as set forth in the redemption notice. The Company expects to incur a pre-tax charge of approximately
, net of tax, or
per diluted share) in connection with the transaction.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including the prospective impact of the Company's amended senior secured credit facilities and the redemption of first priority notes and the use of borrowings under the new term loan facilities, that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended
December 31, 2010
and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.
About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in
For more information, contact:
Thomas A. Kelly
, Senior Vice President – Finance, Tel: (215) 698-5341, or
, Bisno Communications, Tel: (212) 717-7578
SOURCE Crown Holdings, Inc.