By Lisa Kerner
Charlotte, N.C., Dec. 17 – Aptar Group, Inc. agreed to place $475 million of senior notes with institutional investors.
On Monday, the company funded $250 million of the notes in two tranches:
• $125 million of 3.49% series 2014-A-1 senior notes due in December 16, 2023; and
• $125 million of 3.61% series 2014-A-3 senior notes due in December 16, 2025.
Aptar expects to fund the remaining notes on February 26 as follows:
• $100 million of 3.49% series 2014-A-2 senior notes due in February 26, 2024; and
• $125 million of 3.61% series 2014-A-4 senior notes due in February 26, 2026.
Proceeds will be used for Aptar’s $250 million accelerated share repurchase program and to refinance existing debt, according to a company news release.
Interest on the outstanding principal balance of the notes is payable semiannually in arrears as follows: on June 16 and Dec. 16, beginning on June 16 in the case of the series A-1 and A-3 notes; and on Feb. 26 and Aug. 26, beginning on Aug. 26 in the case of the series A-2 and A-4 notes.
Under the note purchase agreement, Aptar must maintain, at the end of each fiscal quarter, a consolidated leverage ratio of no greater than 3.50 to 1.00 and a consolidated interest coverage ratio of no less than 3.00 to 1.00, according to a form 8-K filed with the Securities and Exchange Commission.
Aptar may from time to time, at its option, upon notice, prepay prior to maturity all or any part of the principal amount of the notes, together with accrued interest and a make-whole amount.
Aptar is a Crystal Lake, Ill.-based supplier of dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets.
| Issuer: | Aptar Group, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $475 million
|
| Distribution: | Private placement
|
|
|
| Amount: | $125 million
|
| Coupon: | 3.49%
|
| Maturity: | December 16, 2023
|
| Settlement: | Dec. 16
|
|
|
| Amount: | $125 million
|
| Coupon: | 3.61%
|
| Maturity: | December 16, 2025
|
| Settlement: | Dec. 16
|
|
|
| Amount: | $100 million
|
| Coupon: | 3.49%
|
| Maturity: | February 26, 2024
|
| Announced: | Dec. 17
|
| Settlement: | February 2015
|
|
|
| Amount: | $125 million
|
| Coupon: | 3.61%
|
| Maturity: | February 26, 2026
|
| Announced: | Dec. 17
|
| Settlement: | February 2015
|
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