Amcor plans repurchase offer for PACRS2 ahead of conversion

By Jennifer Chiou

New York, Jan. 24 - Amcor Ltd. announced that its A$210 million of PACRS2 will be convertible into equity on April 30, according to a 6-K filing with the Securities and Exchange Commission.

The PACRS2, which have a reset date of April 30, are the Perpetual Amcor Convertible Reset Securities issued by Amcor Investments (New Zealand) Ltd. in May 2002.

Prior to conversion, Amcor also intends to offer to repurchase PACRS2 notes.

The repurchase offer will begin on March 1 and close on March 23.

Managing director and chief executive officer Ken MacKenzie said in the filing: "The PACRS2 convertible notes are now a less attractive source of funding compared to other alternatives. This initiative will result in a simpler, more flexible and efficient capital structure."

Based on the current share price, the PACRS2 notes would convert to about 30 million shares in Amcor. However, the number of shares actually arising from the conversion will be reduced to the extent holders of PACRS2 accept the repurchase offer from Amcor Investments.

The offer price for the repurchase of PACRS2 notes will be A$105.2632 per note.

Holders accepting the repurchase offer will also receive interest of A$4.2498 per note for the final interest period up to and including April 29.

UBS AG, Australian Branch is the financial advisor on the conversion and repurchase program.

Amcor is an Abbotsford, Victoria, Australia-based packaging company.

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