Rexam launches bond

On 19 March Britain“s Rexam Plc launched its debut benchmark euro bond featuring a GBP 250 million seven-year tranche and a EUR 550 million five-year tranche, the lead managers said. The sterling t…

On 19 March Britain“s Rexam Plc launched its debut benchmark euro bond featuring a GBP 250 million seven-year tranche and a EUR 550 million five-year tranche, the lead managers said. The sterling tranche will be priced to yield 185 to 190 basis points over benchmark government bonds. The euro tranche will be priced to yield 165 to 168 basis points over mid-swaps. The banks said proceeds from the bond would be used for general corporate purposes and to “refinance part of the syndicated bank debt taken on when Rexam acquired American National Can Group, Inc. in 2000”. Rexam, the world biggest maker of drinks cans is rated Baa3 with a stable outlook by Moody“s Investors Service and BBB with a stable outlook by Standard & Poor“s.