Crown Holdings subsidiary issues €500 million in senior notes due 2031

Crown European Holdings S.A., a wholly owned subsidiary of Crown Holdings, Inc. (NYSE:CCK), a $10.6 billion market cap company with strong financial health, completed the issuance of €500 million aggregate principal amount of 3.750% senior unsecured notes due 2031 on Monday. According to InvestingPro analysis, Crown Holdings maintains a perfect Piotroski Score of 9, indicating excellent financial strength. The company disclosed the transaction in a press release statement filed with the U.S. Securities and Exchange Commission.

The notes will mature on September 30, 2031, and bear interest at 3.750% per year, payable semi-annually on March 30 and September 30 of each year, beginning March 30, 2026. Crown European Holdings may redeem some or all of the notes at any time prior to June 30, 2031, at 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. After June 30, 2031, the notes may be redeemed at 100% of the principal amount plus accrued and unpaid interest.

The offering was conducted as a private placement, with the notes resold to qualified institutional buyers under Rule 144A and to non-U.S. persons pursuant to Regulation S of the Securities Act of 1933. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

According to the filing, net proceeds from the offering, along with cash on hand, will be used to redeem the issuer’s outstanding 2.875% senior notes due in February 2026 and to pay related fees and expenses.

If Crown European Holdings or Crown Holdings experiences a change of control repurchase event, the issuer may be required to offer to purchase the notes at 101% of their principal amount plus accrued and unpaid interest.

The notes are senior obligations of the issuer and are unconditionally guaranteed on a senior basis by Crown Holdings and certain current and future subsidiaries in various jurisdictions, subject to applicable law and exceptions. The indenture governing the notes includes covenants that limit the ability of Crown Holdings and its subsidiaries to create liens, engage in sale and leaseback transactions, or merge or consolidate with other companies. Based on comprehensive valuation analysis, Crown Holdings currently appears undervalued, with detailed insights available in the Pro Research Report, part of the extensive coverage of 1,400+ US equities on InvestingPro.

This information is based solely on a press release statement filed with the SEC.

In other recent news, Crown Holdings has announced a €500 million senior notes offering through its subsidiary, Crown European Holdings S.A. The notes, which bear an annual interest rate of 3.750%, are due in 2031 and will be used to redeem outstanding senior notes due in February 2026. The company plans to use the net proceeds from this offering, along with cash on hand, to manage its debt obligations effectively. In addition, Crown Holdings’ stock rating has been reiterated as Buy by Citi, with a price target set at $135, reflecting continued confidence from the analyst team. The company also declared a quarterly dividend of $0.26 per share, payable in August 2025. This series of financial maneuvers, including the notes offering and dividend declaration, indicate strategic financial planning by Crown Holdings. BNP Paribas is acting as the representative for the initial purchasers of the notes offering. These developments highlight Crown Holdings’ efforts to optimize its financial structure and provide returns to its shareholders.

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