PHILADELPHIA, Nov. 30 /PRNewswire-FirstCall/ -- Crown Holdings, Inc. (the "Company") (NYSE: CCK) today announced that Crown Americas LLC and Crown Americas Capital Corp., each a wholly-owned subsidiary of the Company (collectively, the "Issuers"), have notified the holders of the Issuers' 7 5/8% Senior Notes due 2013 (the "Notes") that they will redeem $300 million aggregate principal amount of the Notes outstanding on December 30, 2009 (the "Redemption Date"). The Notes will be redeemed at a price equal to 103.813% of the principal amount of the Notes, plus accrued and unpaid interest up to, but not including, the Redemption Date. Selection of Notes for redemption will be made by The Bank of New York Mellon Trust Company, the trustee for the Notes, on a pro rata basis, provided that no Notes with a principal amount of $1,000 or less shall be redeemed in part. Upon completion of the redemption on the Redemption Date, $200 million aggregate principal amount of the Notes will remain outstanding.
Payment of the redemption price will be made by The Bank of New York Mellon Trust Company on the Redemption Date upon presentation and surrender of the Notes as set forth in the redemption notice. The Company intends to use cash on hand and, if necessary, incremental borrowings under its revolving credit facility to fund the redemption. The Company expects to incur a charge in its fourth quarter 2009 final results upon extinguishment of the Notes of approximately $14 million ($9 million after-tax or $0.06 per diluted share).
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2008 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.
Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania.
For more information, contact:
Timothy J. Donahue, Executive Vice President and
Chief Financial Officer, (215) 698-5088, or
Ed Bisno, Bisno Communications, (212) 717-7578.
SOURCE Crown Holdings, Inc.
Timothy J. Donahue, Executive Vice President and Chief Financial Officer, Crown Holdings, Inc., +1-215-698-5088, or Ed Bisno, Bisno Communications, +1-212-717-7578
