Ball Corp issues €850M in senior notes due 2032

WESTMINSTER, CO – Ball Corporation (NYSE:BALL), a leading provider of metal packaging for beverages, foods, and household products, with a market capitalization of $14.92 billion and annual revenue of $12.02 billion, has announced the completion of its public offering of €850 million in senior unsecured notes due 2032. According to InvestingPro analysis, Ball Corporation maintains a strong financial health rating, supported by 53 consecutive years of dividend payments. The offering, finalized today, was issued under an existing indenture with Deutsche Bank (ETR:DBKGn) Trust Company Americas as trustee.

The notes carry an interest rate of 4.250% and are set to mature on July 1, 2032, with interest payments due semi-annually starting January 1, 2026. Ball Corporation retains the option to redeem the notes in whole or in part before April 1, 2032, at a specified "make-whole" premium. Post April 1, 2032, the company may redeem the notes at 100% of the principal amount plus accrued interest.

The obligations under the notes are backed by guarantees from nearly all of Ball Corporation’s domestic subsidiaries that are also guarantors of its existing debt. The notes are not guaranteed by any foreign subsidiaries of the company. With total debt of $7.06 billion and a healthy current ratio of 1.04, InvestingPro data indicates the company maintains a balanced financial position.

In the event of a change of control repurchase event, Ball Corporation is required to offer to repurchase the notes at 101% of the principal amount plus accrued interest. The indenture includes customary events of default and stipulates certain restrictions on the company’s ability to incur liens and enter into sale-leaseback transactions.

This financial move is part of Ball Corporation’s broader strategy to manage its capital structure and to support its long-term growth objectives. The full details of the offering are outlined in the exhibits attached to the company’s recent 8-K filing with the Securities and Exchange Commission (SEC).

Investors and stakeholders can refer to the official SEC filing for a more detailed understanding of the terms and conditions associated with the notes and the indenture. The completion of this offering underscores Ball Corporation’s ongoing efforts to strengthen its financial foundation and to continue its expansion within the metal packaging industry.

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 both the forecasted $0.71 and the consensus estimate of $0.69. The company’s revenue also exceeded expectations, totaling $3.1 billion compared to the anticipated $2.9 billion. This performance was driven by increased shipment volumes and effective cost management. In addition, Ball Corporation announced the pricing of an upsized public offering of €850 million in senior notes, initially set at €750 million, due to high demand. The proceeds from this offering are intended for general corporate purposes, including debt refinancing and strategic investments.

Truist Securities recently raised its price target for Ball Corporation to $62.00, up from $58.00, while maintaining a Buy rating, reflecting confidence in the company’s future performance. This adjustment follows Ball Corp ’s strong first-quarter results and the company’s ongoing share repurchase program, which aims to buy back approximately $1.3 billion worth of shares in 2025. The company has already completed $651 million in share repurchases year to date.

Ball Corporation continues to project full-year 2025 EPS growth of 11% to 14%, supported by strategic acquisitions and partnerships. The company also plans significant capital expenditures and further share repurchases throughout the year. Despite potential challenges such as tariff uncertainties, Ball Corporation remains focused on its growth targets, emphasizing its strategic initiatives and robust financial management.

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