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WESTMINSTER, Colo. - Ball Corporation (NYSE: BALL), a $14.6 billion market cap supplier of sustainable aluminum packaging solutions with a "GOOD" InvestingPro Financial Health score, has announced the pricing of an upsized public offering of €850 million in senior notes with a 4.250% interest rate, maturing in 2032. The offering, initially set at €750 million, was increased due to demand and is expected to close on May 19, 2025, subject to customary closing conditions.
The company plans to use the net proceeds from the notes, along with available cash, for general corporate purposes. These may include debt refinancing or repayment, investments in strategic alliances, acquisitions, working capital, pension contributions, or capital expenditures. The company maintains a solid current ratio of 1.04 and a manageable debt-to-equity ratio of 1.21, according to InvestingPro data. As an immediate step, Ball intends to repay outstanding borrowings under its U.S. dollar revolver with a portion of the proceeds and cash on hand, without reducing the facility’s commitment.
The global coordinators and joint book-running managers for this offering are BNP PARIBAS, Deutsche Bank Securities Inc., Crédit Agricole Corporate and Investment Bank, and UniCredit Bank GmbH.
This offering is made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. The notes are being offered only through a prospectus supplement and accompanying prospectus.
Ball Corporation, employing 16,000 people globally, reported net sales of $11.80 billion in 2024, excluding its divested aerospace business. InvestingPro analysis indicates the company is currently undervalued, with 5 analysts recently revising earnings estimates upward. The company has maintained dividend payments for 53 consecutive years, demonstrating strong financial stability. InvestingPro subscribers have access to 6 additional key insights about Ball Corporation’s financial outlook and market position. The company’s forward-looking statements indicate expectations of completing the offering and issuing the notes, with the disclaimer that actual results could differ due to various risks and uncertainties.
The press release specifies that the offering is addressed to qualified investors in the European Economic Area and the United Kingdom, with no intention to sell the securities where it would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.
The information in this article is based on a press release statement from Ball Corporation.
In other recent news, Ball Corporation reported strong financial results for the first quarter of 2025, with earnings per share (EPS) reaching $0.76, surpassing forecasts of $0.71. The company’s revenue also exceeded expectations, coming in at $3.1 billion against an anticipated $2.9 billion. Truist Securities responded to these results by raising Ball Corp’s stock price target from $58 to $62, maintaining a Buy rating. Analysts at Truist highlighted Ball Corp’s robust performance and positive outlook, noting the company’s strong volume growth across all regions and effective cost management strategies. Ball Corp reiterated its 2025 EPS growth guidance of 11-14% year-over-year, supported by its strategic initiatives and aggressive share repurchase program. The company has already completed $651 million in share buybacks this year, with plans to repurchase at least $1.3 billion worth of shares by the end of 2025. Ball Corp’s focus on aluminum packaging and strategic acquisitions is expected to bolster future growth, particularly in European and South American markets. Despite potential challenges such as tariffs and economic slowdowns, Ball Corp remains confident in achieving its financial goals.
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