Ball Corporation Announces Public Offering of Euro-Denominated Senior Notes

Rhea-AI Summary

Ball Corporation (NYSE: BALL) has announced a public offering of €750 million Senior Notes due 2032. The company plans to use the proceeds for general corporate purposes, including potential debt refinancing, strategic investments, acquisitions, working capital, pension contributions, and capital expenditures. Initially, Ball intends to repay outstanding borrowings under its U.S. dollar revolver using a portion of the net proceeds and cash on hand.

The offering is being coordinated by BNP PARIBAS, Deutsche Bank Securities, Crédit Agricole Corporate and Investment Bank, and UniCredit Bank as global coordinators and joint book-running managers. The offering will be made through an effective shelf registration statement on Form S-3 previously filed with the SEC.

Positive

• €750 million debt offering provides significant capital flexibility
• Potential for strategic investments and acquisitions
• Multiple high-profile financial institutions backing the offering
• Opportunity to refinance existing debt

Negative

• Increased debt burden with new Euro-denominated notes
• Exposure to currency exchange rate risks due to Euro-denominated debt
• Additional interest expenses from new debt issuance

Insights

Corporate Finance Expert

Ball Corporation's €750M debt offering strengthens financial flexibility while managing existing debt obligations and preparing for strategic investments.

Ball Corporation has launched a significant €750 million senior notes offering due 2032, representing a substantial capital raise in euro-denominated debt. This financing move provides Ball with enhanced liquidity and balance sheet flexibility. The company has outlined multiple potential uses for these funds, including debt refinancing, strategic acquisitions, working capital enhancement, pension contributions, and capital expenditures.

The immediate application of some proceeds to repay outstanding borrowings under their U.S. dollar revolver, without reducing the commitment, suggests a tactical approach to debt management. This effectively recycles short-term debt into longer-term financing while maintaining full access to their revolving credit facility, preserving financial flexibility for future needs.

The euro denomination of these notes is strategically significant. By issuing debt in euros, Ball is likely taking advantage of potentially favorable interest rate differentials between European and U.S. markets. This approach also provides a natural currency hedge against their European operations and assets, reducing foreign exchange risk exposure.

The engagement of major global financial institutions as coordinators and book-runners (BNP PARIBAS, Deutsche Bank, Crédit Agricole, and UniCredit) signals strong institutional backing for this offering. The use of an existing shelf registration statement streamlines the regulatory process, allowing Ball to efficiently access capital markets when conditions are deemed favorable.

This capital raise demonstrates Ball's proactive approach to financial management, securing long-term financing while maintaining flexibility in how and when they deploy these resources across their business priorities.

WESTMINSTER, Colo., May 12, 2025 /PRNewswire/ -- Ball Corporation ("Ball") (NYSE: BALL) announced today that it has commenced an underwritten public offering of €750 million aggregate principal amount of Senior Notes due 2032 (the "Notes"). The exact amount, terms and timing of the offering will depend upon market conditions and other factors.

Ball intends to use the net proceeds from the offering, together with cash on hand, for general corporate purposes, which may include the refinancing or repayment of debt, potential investments in strategic alliances and acquisitions, working capital, pension contributions or capital expenditures. Prior to the application of such proceeds, Ball intends to repay outstanding borrowings under its U.S. dollar revolver, without a reduction in commitment, using a portion of the net proceeds from the offering, together with cash on hand. The exact allocation of such proceeds and the timing thereof is at the discretion of Ball's management.

BNP PARIBAS, Deutsche Bank Securities Inc., Crédit Agricole Corporate and Investment Bank and UniCredit Bank GmbH are acting as global coordinators and joint book-running managers of the offering of the Notes.

Ball is making the offer pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. The offering of the Notes will be made solely by means of a prospectus supplement and accompany prospectus. Copies of the preliminary prospectus supplement and accompany prospectus relating to the offering may be obtained from BNP PARIBAS, 16 boulevard des Italiens, 75009 Paris, France, Attention: Fixed Income Syndicate, Phone: 1-800-854-5674, Deutsche Bank Securities Inc., Attn: Prospectus Group, 1 Columbus Circle New York, New York 10019, Email: prospectus.ops@db.com, Crédit Agricole Corporate and Investment Bank, Attention: Leveraged Syndicate, Phone: 1-212-261-3849, or UniCredit Bank GmbH, Piazza Gae Aulenti, 4 - UniCredit Tower C, 20154 Milano, Italy, Attention: Non-Investment Grade Syndicate; phone: +39 02 8862 0541; email: LOASYNSPOFINLONDON@srv.unicredit.eu.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ball Corporation

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers. Ball Corporation employs 16,000 people worldwide and reported 2024 net sales of $11.80 billion, which excludes the divested aerospace business.

Forward-Looking Statements

This release contains "forward-looking" statements concerning future events, including, but not limited to, Ball's ability to consummate the offering and issue the Notes, expected closing date of the offering and the intended use of proceeds of the offering. Words such as "intends," "will," and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov.

In any EEA Member State, this press release is only addressed to and is only directed at qualified investors (within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the "Prospectus Regulation")) in that Member State. In the United Kingdom, this press release is being distributed only to, and is directed only at "qualified investors" (as defined in the Prospectus Regulation as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, (as amended, the "Order"), (ii) are high net worth companies or other persons falling within Article 49(2)(a) to (d) of the Order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Notes may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). The Notes will only be available to qualified investors in the EEA or relevant persons in the United Kingdom and this press release must not be acted on or relied on by anyone who is not a qualified investor or a relevant person.

In connection with any issuance of the Notes, a stabilizing manager (or persons acting on its behalf) may over-allot Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that the stabilizing manager (or any person acting on behalf of the stabilizing manager) will undertake stabilization action. Any stabilization action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Notes and 60 days after the date of the allotment of the Notes, as applicable. Any stabilization action or over-allotment must be conducted by the stabilizing manager (or persons acting on its behalf) in accordance with all applicable laws and rules.

Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail investors in the EEA.

Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No UK PRIIPs key information document (KID) has been prepared as not available to retail investors in the UK.

 

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SOURCE Ball Corporation

FAQ

What is the size of Ball Corporation's (BALL) Euro note offering in 2025?

Ball Corporation announced a €750 million Senior Notes offering due 2032.

How will Ball Corporation (BALL) use the proceeds from its 2025 Euro note offering?

Ball plans to use the proceeds for general corporate purposes, including debt refinancing, strategic investments, acquisitions, working capital, pension contributions, and capital expenditures. Initially, they will repay outstanding U.S. dollar revolver borrowings.

Which banks are managing Ball Corporation's (BALL) 2025 Euro note offering?

The offering is being managed by BNP PARIBAS, Deutsche Bank Securities, Crédit Agricole Corporate and Investment Bank, and UniCredit Bank as global coordinators and joint book-running managers.

When will Ball Corporation's (BALL) Euro notes mature?

The Senior Notes will mature in 2032.

How is Ball Corporation (BALL) making the Euro note offering?

Ball is making the offering through an effective shelf registration statement on Form S-3 previously filed with the SEC.