Rexam signs successful US bond issue

In anticipation of GBP 1 billion of bonds maturing in the first half of 2013, Rexam has announced that it has now signed the documentation relating to a total issue of USD 750 million of senior notes in the US private placement market.

Rexam PLC the global consumer packaging company, confirms that, in anticipation of GBP 1 billion of bonds maturing in the first half of 2013, it has now signed the documentation relating to a total issue of USD 750 million of senior notes in the US private placement market. This comprises USD 545 million of notes due 18 December 2022, EUR 25 million of notes due 18 December 2022 and USD 175 million of notes due 18 December 2024. The average coupon on these new notes is just over 4%, compared with an average coupon of 6% on the expiring notes. Owing to the timing of the maturity of the existing GBP 1 billion bonds, the benefit of this lower interest rate will be realized from the second half of 2013.
A delayed funding of these notes has been agreed with investors and therefore, following completion of customary conditions precedent to drawdown, the bonds will fund in two tranches on 18 December 2012 and 3 January 2013.
David Robbie, Rexam’s Finance Director, commented: “We are pleased to have signed the transaction successfully at a significantly lower coupon than our maturing bonds. Rexam has a strong capital structure and having significantly strengthened our balance sheet, we only sought to refinance a portion of the GBP 1 billion of bonds due to mature in 2013.”