Crown Holdings issues $700M in senior unsecured notes

Crown Holdings (NYSE:CCK), Inc., a manufacturer of metal packaging products with a market capitalization of $11.2 billion, has entered into a Purchase Agreement to issue $700 million in senior unsecured notes due 2033. The agreement, dated May 12, 2025, involves Crown Americas LLC, a subsidiary of Crown Holdings, and several initial purchasers led by BofA Securities, Inc. According to InvestingPro analysis, the company currently shows strong financial health with an overall score of 2.97 (GOOD), though the stock appears slightly overvalued based on Fair Value calculations.

The notes, bearing an interest rate of 5.875% per annum, will mature on June 1, 2033, with semi-annual interest payments starting December 1, 2025. Prior to June 1, 2028, the issuer has the option to redeem the notes in whole or in part at a 100% principal amount plus a make-whole premium. After this date, redemptions can occur at set prices, and up to 40% of the notes can be redeemed with proceeds from certain equity offerings.

In the event of a change of control repurchase event, the issuer may need to offer to repurchase the notes at 101% of their principal amount, plus any accrued and unpaid interest.

The notes are guaranteed by Crown Holdings and certain U.S.-based subsidiaries, subject to specific conditions. The issuer and guarantors will also file a registration statement with the SEC for a public exchange offer of the notes.

The private placement will target qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. These notes have not been registered under the Securities Act and are subject to restrictions on resale in the U.S. unless registered or exempt from registration requirements.

This financial move is based on a press release statement and the full details of the Purchase Agreement are incorporated by reference into the SEC filing. The completion of the offering is contingent upon various conditions, and there is no guarantee that it will be completed as described or at all.

In other recent news, Crown Holdings reported a strong first quarter for 2025, with earnings per share (EPS) of $1.67, significantly surpassing the forecasted $1.23. The company’s revenue also exceeded expectations, reaching $2.89 billion, compared to the anticipated $2.82 billion. These positive results have led Crown Holdings to raise its full-year EPS guidance to a range of $6.70 to $7.10. Additionally, UBS has maintained a Buy rating for Crown Holdings, increasing the price target from $109 to $114, citing the company’s strong quarterly performance and favorable earnings forecasts. Crown Holdings also announced plans to offer $500 million in senior unsecured notes due 2033 through its subsidiary, Crown Americas LLC, to refinance existing debt. This offering is subject to market conditions and regulatory approvals. Furthermore, Crown PropTech Acquisitions has entered into non-redemption agreements with certain investors to secure an extension for completing a business combination. These developments reflect ongoing strategic financial maneuvers and positive market evaluations for Crown Holdings.

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