Ball Corporation Announces Upsize and Pricing of €850 Million of Euro-Denominated Senior Notes

Rhea-AI Summary

Ball Corporation (NYSE: BALL) has successfully priced a public offering of €850 million in Senior Notes due 2032, with a 4.250% interest rate. The offering, upsized from the initially announced €750 million, is expected to close on May 19, 2025.

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

Positive

• Successful upsize of the offering from €750M to €850M indicates strong investor demand
• Strengthens financial flexibility with additional liquidity for strategic initiatives
• Demonstrates ability to access European debt markets at competitive rates

Negative

• Additional debt increases interest expense and leverage
• 4.250% interest rate represents a significant cost of capital in the current market

Insights

Financial Analyst

Ball Corporation secures €850M in debt financing at 4.25%, boosting financial flexibility while potentially increasing leverage.

Ball Corporation has successfully priced an upsized offering of €850 million in senior notes, increasing the amount by €100 million from the initially announced €750 million. The notes carry a 4.25% interest rate and will mature in 2032. This demonstrates strong market demand for Ball's debt, suggesting investor confidence in the company's credit profile despite the current interest rate environment.

The strategic flexibility provided by this financing is notable. Management plans to initially use some proceeds to repay outstanding borrowings under their U.S. dollar revolver while preserving the credit facility's full capacity. This maintains Ball's liquidity profile while allowing significant financial optionality for various strategic initiatives including potential acquisitions, pension contributions, capital expenditures, or debt refinancing.

The 4.25% coupon rate appears reasonably competitive for a 7-year euro-denominated corporate bond in the current rate environment. By denominating the debt in euros, Ball likely achieves some natural currency hedging for its European operations while potentially capitalizing on the interest rate differential between euro and dollar markets.

The transaction reflects prudent liability management as Ball maintains financial flexibility without committing to any specific capital allocation. However, this additional debt will increase Ball's leverage ratio in the near term unless quickly deployed for debt refinancing. The successful upsizing indicates favorable reception by debt investors, a positive signal regarding market perception of the company's financial stability.

WESTMINSTER, Colo., May 12, 2025 /PRNewswire/ -- Ball Corporation ("Ball") (NYSE: BALL) announced today that it priced an underwritten public offering of €850 million aggregate principal amount of 4.250% Senior Notes due 2032 (the "Notes"). The aggregate principal amount of the Notes to be issued in the offering was increased to €850 million from the previously announced €750 million. The offering is expected to close on May 19, 2025, subject to the satisfaction of customary closing conditions.

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 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 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 and interest rate of Ball Corporation's (BALL) new Euro-denominated Senior Notes?

Ball Corporation's new Euro-denominated Senior Notes offering is €850 million with a 4.250% interest rate, due in 2032.

When will Ball Corporation's (BALL) €850M Senior Notes offering close?

The offering is expected to close on May 19, 2025, subject to customary closing conditions.

How will Ball Corporation (BALL) use the proceeds from its €850M Senior Notes?

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) €850M Senior Notes offering?

BNP PARIBAS, Deutsche Bank Securities, Crédit Agricole Corporate and Investment Bank, and UniCredit Bank are acting as global coordinators and joint book-running managers.