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ZURICH - Amcor Flexibles North America, Inc. (AFNA), a subsidiary of Amcor plc (NYSE:AMCR; ASX:AMC), has successfully priced a private offering of $2.2 billion in guaranteed senior notes. The offering comes as InvestingPro data shows the company already operates with a significant debt burden, with total debt standing at $8.3 billion and a concerning debt-to-capital ratio of 87%. The offering, expected to close on March 17, 2025, includes three sets of notes with varying interest rates and maturities: $725 million at 4.800% due 2028, $725 million at 5.100% due 2030, and $750 million at 5.500% due 2035.
The proceeds from the offering are intended for the repayment of existing debt of Berry Global Group, Inc. in relation to Amcor’s upcoming merger with Berry. The notes, excluding those due in 2028, are subject to a special mandatory redemption if the merger is not finalized within five business days after the predetermined outside date. According to InvestingPro, Amcor’s current financial health score is rated as "FAIR," with 13 additional key ProTips available to subscribers regarding the company’s financial position and outlook.
These senior notes, which are unsecured obligations of AFNA, will be unconditionally guaranteed by Amcor and certain subsidiaries. The notes and guarantees have not been registered under the Securities Act of 1933 or any state securities laws, and are being offered to qualified institutional buyers and certain non-U.S. persons in compliance with Rule 144A and Regulation S, respectively.
Amcor, a global leader in responsible packaging solutions, reported $13.6 billion in annual sales for fiscal year 2024. The company operates across 212 locations in 40 countries, focusing on recyclable, reusable, and lighter weight packaging with an increasing amount of recycled content. Recent financial data shows the company with a market capitalization of $1.27 billion and trailing twelve-month revenue of $4.64 billion, though with challenging gross profit margins of about 14%. For deeper insights into Amcor’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
This offering is part of a confidential memorandum and is not an offer to sell or a solicitation of an offer to purchase securities. The sale of the notes is subject to customary closing conditions and is not available in jurisdictions where such an offering would be unlawful.
The information provided in this article is based on a press release statement and aims to present the facts surrounding Amcor’s private offering without endorsing the company’s claims or future prospects.
In other recent news, Amcor and Berry Global have moved a step closer to their merger by clearing a significant antitrust hurdle in the United States. This development follows the approval from shareholders of both companies, with an overwhelming majority voting in favor of the merger. The companies have also received antitrust clearances from China and Brazil, inching them closer to finalizing the merger by mid-2025. Meanwhile, AMC Entertainment’s fourth-quarter performance in 2024 exceeded expectations, driven by strong consumer demand and strategic execution. Benchmark analysts have maintained a Hold rating on AMC, acknowledging the company’s operational efficiency and expansion of premium formats. DMC Global reported fourth-quarter sales of $152.4 million, surpassing its guidance, with an improved adjusted EBITDA margin of 7.8%. The company emphasizes its focus on free cash flow and debt reduction, providing guidance for first-quarter 2025 sales between $146 million and $154 million. These developments reflect the ongoing strategic initiatives and market positioning of these companies.
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