Crown Holdings to brings bonds, credit facility to fund tender for Crown European notes

By Paul A. Harris

St. Louis, Oct. 18 - Crown Holdings, Inc. plans to sell new senior unsecured notes and obtain a new senior credit facility to fund its tender for any and all of Crown European Holding's SA's outstanding notes, the company said in a news release Tuesday.

Citigroup and Lehman Brothers are the dealer managers and solicitation agents for the tender, which expires on Nov. 16. An informed source told Prospect News that both the bonds and bank loan could come soon, but that there was no further information available at the Tuesday close.

The affected notes include $1.085 billion of Crown European's 9½% second-priority senior secured notes due March 1, 2011, €285 million of its 10¼% second-priority senior secured notes due March 1, 2011 and $725 million of its 10 7/8% third-priority senior secured notes due March 1, 2013.

The company is also soliciting consents to amend the notes' indentures, eliminating all restrictive covenants, reporting requirements and events of default as well as releasing the collateral securing the notes, according to the news release.

Crown is a Philadelphia-based packaging company.

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