Crown Holdings begins tender offer for $600 million 7¾% notes due 2015

By Marisa Wong

Madison, Wis., Jan. 18 - Crown Holdings, Inc. announced that it started a tender offer for any and all of its outstanding $600 million 7¾% senior notes due 2015.

The offer will expire at 5 p.m. ET on Feb. 14.

Holders who tender their notes at or before 5 p.m. ET on Jan. 31, the early tender deadline, will be paid $1,041.25 for each $1,000 principal amount of notes purchased, which includes a $2.50 early tender premium.

Holders who tender their notes after the early tender deadline but before the expiration date will receive $1,038.75 per $1,000 of notes.

The company will also pay accrued interest up to but excluding the early or final settlement date. The early settlement date is expected to be the first business day after the early tender deadline, and the final settlement date is expected to occur promptly after the expiration time.

The company said it plans to redeem any outstanding notes not purchased in the tender offer on Feb. 17 at 103.875 plus accrued interest up to the redemption date.

The tender offer and any subsequent redemption will be funded with proceeds from an offering of new senior notes due 2021 priced by subsidiaries Crown Americas LLC and Crown Americas Capital Corp. III.

Deutsche Bank Securities (212 250-6429) is the dealer manager for the tender offer, and D.F. King & Co., Inc. (888 887-1266) is the information and tender agent.

Crown Holdings is a Philadelphia-based designer, manufacturer and seller of packaging products for consumer goods.

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