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Crown Holdings, Inc., a leader in metal packaging technology with a market capitalization of $11.42 billion, announced today the redemption of all outstanding 4.750% Senior Notes due 2026, initially valued at $875 million. The redemption, scheduled for June 15, 2025, will be at par value, including accrued and unpaid interest since the last interest payment date of February 1, 2025. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, suggesting strong operational performance and financial stability.
This financial move by Crown Holdings, through its subsidiaries Crown Americas LLC and Crown Americas Capital Corp. VI, is subject to the successful issuance of $700 million in new 5.875% Senior Notes due 2033. These new notes are part of a Purchase Agreement dated May 12, 2025, involving Crown Holdings, Crown Americas LLC, and BofA Securities, Inc. among others. The company’s debt management strategy comes as it trades near its 52-week high of $100.17, with a strong year-to-date return of 21.09%.
The completion of the new notes’ issuance is a condition to the redemption of the 2026 Notes. Crown Holdings has stated that if this condition is not met, the planned redemption may not proceed as scheduled.
Crown Holdings, Inc., headquartered in Philadelphia, Pennsylvania, is incorporated in the state and trades on the New York Stock Exchange under the ticker (NYSE:CCK). The company’s SEC filing on May 16, 2025, reveals that the decision to redeem the 2026 Notes is part of its financial strategy, although it has not explicitly stated the reasons behind this redemption or the issuance of new debt. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available through their comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
Investors should note that this announcement is based on the company’s recent SEC filing and does not guarantee the redemption of the 2026 Notes if the issuance of new notes does not occur before the redemption date. For deeper insights into Crown Holdings’ financial health and debt metrics, including 12+ additional ProTips and extensive financial analysis, visit InvestingPro.
In other recent news, Crown Holdings has announced plans to issue $700 million in senior unsecured notes due in 2033. These notes, issued through Crown Americas LLC, will carry an interest rate of 5.875% per annum, with semi-annual interest payments starting in December 2025. Additionally, Crown Holdings intends to offer $500 million in senior unsecured notes, with proceeds aimed at repaying existing senior notes due in 2026. The company has highlighted that these offerings will be conducted through private placements and are subject to market conditions and regulatory approvals.
In a separate development, UBS has maintained a Buy rating on Crown Holdings and raised its stock price target to $114, following the company’s strong first-quarter performance. Crown Holdings reported earnings before interest and taxes that exceeded consensus estimates by 20%, and its second-quarter earnings per share guidance also surpassed expectations. Despite these positive results, UBS noted that the company’s earnings forecast for 2025 was only modestly increased, suggesting a conservative approach.
Furthermore, Crown PropTech Acquisitions, a related entity, has entered into non-redemption agreements with certain investors to extend the deadline for completing a business combination. These agreements are intended to keep more funds in the company’s trust account. Crown Holdings continues to navigate its financial strategies amidst these recent developments.
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