21st Jun 2007 12:30
Rexam PLC21 June 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTOTHE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. Subordinated Bond issue successfully launched and priced Further to its announcement on 11 June 2007 regarding the acquisition of OIPlastic Products FTS Inc ("O-I Plastics"), Rexam, the global consumer packaginggroup and the world's leading beverage can maker, has successfully launched andpriced the proposed Subordinated Bond issue. The issue of Subordinated Bonds totals €750 million in aggregate principalamount, (equivalent to approximately £500m) and carries an annual coupon of6.75% for the first ten years, representing a margin of 190 basis points overthe 10 year mid-swap rate at the time of pricing. The Subordinated Bonds have ascheduled maturity date of 29 June 2067, although Rexam has the option to redeemthem on the tenth anniversary of their issue or on any interest payment datethereafter. The proceeds from the issue of the Subordinated Bonds will be converted intofloating rate US dollars to part fund the O-I Plastics acquisition. Based oncurrent US dollar 3 month LIBOR, the initial interest rate will be approximately7.25%. The Subordinated Bonds are expected to be rated Ba2 by Moody's Investors ServiceLimited and BB+ by Standard & Poor's Rating Services, a division of TheMcGraw-Hill Companies, Inc. Rexam's senior ratings have previously beenconfirmed following the announcement of the O-I Plastics transaction at Baa3(stable outlook) and BBB flat (negative outlook). Barclays Capital and Citi were Joint Bookrunners and Joint Structuring Advisersto the Issue. 21 June 2007Enquiries Jon Drown, Director, Group Treasury +44 20 7227 4100 This announcement and the information contained therein are not for release,publication or distribution, directly or indirectly, in or into the UnitedStates, Australia, Canada or Japan. This announcement is not an offer to sell ora solicitation of an offer to buy the Capital Securities in the United States.The Capital Securities have not been and will not be registered under the USSecurities Act of 1933, as amended, and may not be offered or sold, directly orindirectly, in the United States absent registration or an exemption fromregistration. There will be no public offering of securities in the UnitedStates. The Capital Securities have not been and will not be registered with anyregulatory authority of any state within the United States. Notes to editors: Rexam is a leading global consumer packaging company and the largest beveragecan maker in the world. Our vision is to be the leading global consumerpackaging company. We are business partners to many of the world's most famousand successful consumer brands as well as young, entrepreneurial start-ups. Weoffer a broad range of packaging products, services and solutions for differentindustries, using different materials and technologies. Three thingscharacterise us - leadership in our industry, our commitment to innovation andour passion to deliver exceptional value. In 2006, including the Glass business,we had sales of approximately £3.6 billion and employed some 24,200 people inmore than 20 countries. In March 2007, Rexam announced that it is to sell itsGlass business for €660m. The deal is subject to regulatory authority clearanceand is awaiting completion. Rexam is a member of the FTSE 100. Rexam's ordinaryshares are listed with the UK Listing Authority and trade on the London StockExchange under the symbol REX. For further information on Rexam, visitwww.rexam.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REX.L