Smurfit Kappa Group to redeem 10 5/8%, 12½% notes due 2009

By Angela McDaniels

Seattle, Dec. 1 - Smurfit Kappa Group said it will redeem the 10 5/8% senior subordinated notes due 2009 and the 12½% senior subordinated discount notes due 2009 issued by Kappa Beheer BV as part of the merger between Jefferson Smurfit Group and Kappa Packaging, completed Thursday.

The redemption will be funded through €2.93 billion of new senior credit facilities, the company said.

The companies' other notes are unaffected, including: JSG Holding plc's 11½% senior notes due 2015, JSG Funding plc's 9 5/8% and 10 1/8% senior notes due 2012 and 7¾% senior subordinated notes due 2015, Smurfit Capital Funding Ltd.'s guaranteed debentures due 2025 and Smurfit Receivables plc's receivables securitization floating-rate notes due 2011.

The merger was completed through an issue of shares by Jefferson Smurfit and the payment to Kappa's shareholders of about €300 million in cash and a €75 million subordinated promissory note.

Jefferson Smurfit's former shareholders now own 58.3% of the Smurfit Kappa Group and Kappa's former shareholders own 41.7%, the company said.

Smurfit Kappa Group manufactures packaging materials. It is based in Dublin, Ireland, and Eindhoven, the Netherlands.

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