Ball begins tender offer, consent bid for $375 million 7 1/8% notes

By Susanna Moon

Chicago, May 9 - Ball Corp. said it began a cash tender offer for its outstanding $375 million principal amount of 7 1/8% senior notes due 2016.

The total purchase price will be $1,053.22 for each $1,000 principal amount of notes tendered by 5 p.m. ET on May 22, the consent deadline. The total amount includes a consent payment of $7.50 per $1,000 of notes.

Those who tender after the consent date will receive $1,045.72 per $1,000 of notes.

The company also will pay accrued interest to but excluding the payment date.

The tender offer will end at 9 a.m. ET on June 7.

Ball also is soliciting consents to amend the notes to eliminate most of the restrictive covenants and events of default. In order to amend the notes, the company must obtain consents for at least a majority of the outstanding notes.

Holders who tender their notes will be deemed to consent to the proposed amendments and holders may not deliver consents without tendering their notes.

Tendered notes may be withdrawn by the consent deadline.

The offer is conditioned on execution of a supplemental indenture effecting the proposed amendments and the completion of financing with enough proceeds to fund the offer.

D.F. King & Co., Inc. (800 207-3158 or banks and brokers call 212 269-5550) is the depositary and information agent. Deutsche Bank Securities Inc. (800 503-4611) is the dealer manager and solicitation agent.

Ball is a Broomfield, Colo.-based supplier of packaging for beverage, food and household products.

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