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28 May 2014

Smurfit Kappa announces the pricing of new €500,000,000 senior notes offering

Smurfit Kappa Group today announces that it has successfully completed the pricing of an offering of €500 million of euro denominated senior notes due 2021 to be issued by its wholly owned subsidiary Smurfit Kappa Acquisitions.

The net proceeds of the offering, together with existing cash resources, will be used to redeem all of the existing €500 million 7.75% senior notes due 2019 that were issued by Smurfit Kappa Acquisitions on 19 November 2009 and to pay certain fees and expenses related to the offering and costs related to the redemption. 

The notes are being offered in a private placement, and there will be no public offering of the notes.  The notes will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act of 1933, as amended (the "U.S. Securities Act"). 

The notes priced at an issue price of 100 percent and at an interest rate of 3.25%. The closing of the sale of the notes is scheduled to be completed on 3 June 2014, and is subject to customary conditions.  

Cash interest on the notes will be €23 million per annum lower than that currently payable on the 7.75% notes being redeemed.