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Smurfit Kappa launch E400m bond notes

Monday, September 03 10:20:16

Dublin-based Smurfit Kappa Group (SKG), one of the world's largest manufacturers of paper-based packaging products, today said it is to launch two bond notes with a total value of E400m.

The firm said that its wholly-owned subsidiary, Smurfit Kappa Acquisitions, is issuing E200 million of euro denominated senior secured notes due 2018 and $250 million (E198.9m) of U.S. dollar senior secured notes due 2018.

It said that the net proceeds of the offering will be used to repay all of the existing 7.75pc senior subordinated notes due 2015 that were issued by Smurfit Kappa Funding plc on 31 January 2005 and to pay certain fees and expenses related to the offering.

"Any excess proceeds will be used to repay term loans outstanding under the Group's senior credit facility. The notes are being offered in a private placement and there will be no public offering of the notes," the company's statement said.

Meanwhile, Fitch Ratings has assigned Smurfit Kappa Group's (SKG) prospective senior secured notes, to be issued by Smurfit Kappa Acquisitions, an expected rating of 'BB+(EXP)'. The final rating is contingent on the receipt of final documents conforming to information already received.

The agency has also affirmed SKG's Long-term foreign currency Issuer Default Rating (IDR) at 'BB', with a Stable Outlook.