Smurfit Kappa GrpPLC Statement re redemption of EUR500 million 7.25% Senior Notes due 2017
03 Octobre 2013 - 8:00AM
UK Regulatory
TIDMSKG
Smurfit Kappa announces redemption of EUR500 million 7.25%
Senior Notes due 2017
Significant reduction in interest costs and immediately earnings
accretive
SKG.ISKG.L
Dublin, London, 3 October, 2013: Smurfit Kappa Group plc ("SKG"
or the "Group") announces that one of its wholly-owned
subsidiaries, Smurfit Kappa Acquisitions, intends to redeem its
EUR500 million 7.25% Senior Notes due 2017. The redemption will be
funded from existing credit facilities together with approximately
EUR220 million from the Group's existing cash resources.
The Group expects cash interest savings from the redemption will
be approximately EUR30 million per annum and the transaction will
be immediately earnings accretive with an annualised increase in
EPS of approximately 11 cent. There will be a one-off exceptional
cost of approximately EUR26 million arising from the redemption
premium and the accelerated amortisation of unamortised deferred
debt issue costs related to the notes being redeemed.
Ian Curley, Smurfit Kappa Group CFO, commented: "This
transaction is a further significant step in reducing our funding
costs following the transition of SKG's debt portfolio to an
unsecured corporate profile. The redemption further lowers SKG's
overall cost of capital, materially reduces debt servicing costs
and enhances earnings and free cash flow.
The strength of our free cash flow generation allows us to fund
a significant portion of the redemption from existing cash
resources. Following the transaction, the Group continues to
maintain strong liquidity in the form of cash and undrawn committed
credit facilities."
About Smurfit Kappa
Smurfit Kappa is one of the leading producers of paper-based
packaging in the world, with around 41,000 employees in
approximately 350 production sites across 32 countries and with
sales revenue of EUR7.3 billion in 2012.
Innovation, service and pro-activity towards customers, using
sustainable resources, is our primary focus. This focus is enhanced
through us being an integrated producer, with our packaging plants
sourcing the major part of their raw materials from our own paper
mills. We are the European leader in paper-based packaging,
operating in 21 countries selling products including corrugated,
containerboard, bag-in-box, solidboard and solidboard packaging. We
have a growing base in Eastern Europe in many of these product
areas. We also have a key position in other product/market segments
including graphicboard, MG paper and sack paper.
We are the only large scale pan regional player in the Americas,
operating in 11 countries in total in North, Central and South
America.
Forward Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business, and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable. However, because
they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual
results or performance may differ materially from those expressed
or implied by such forward-looking statements.
ENDS
Seamus Murphy FTI Consulting
Smurfit Kappa Group
Tel: +353 1 202 71 80 Tel: +353 1 663 36 86
E-mail: E-mail: smurfitkappa@fticonsulting.com
ir@smurfitkappa.com
This information is provided by Business Wire
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