Smurfit Kappa tenders for 9 5/8%, 10 1/8% notes

By Jennifer Chiou

New York, July 20 - Smurfit Kappa Funding plc (formerly JSG Funding plc) started a cash tender offer for all of its $72.119 million of 9 5/8% senior notes due 2012 and its €33.07 million of 10 1/8% senior notes due 2012, according to a 6-K report filed with the Securities and Exchange Commission.

The company is also soliciting consents to amend the note indentures to eliminate substantially all of the restrictive covenants and modify certain events of default and other provisions.

The offer will end at noon ET on Aug. 16.

Smurfit Kappa said it will pay the present value of $1,048.13, the redemption amount of the notes on their first call date of Oct. 1, 2007, discounted using the 4¼% Treasury due Oct. 31, 2007 and 50 basis points per $1,000 principal amount of 9 5/8% notes tendered.

For each €1,000 principal amount of 10 1/8% notes tendered, the company will pay the present value of €1,073.90, the redemption amount of the notes on their first call date of Oct. 1, 2007, discounted using the 2¼% BKO due Sept. 14, 2007 and 50 bps.

The tender consideration includes an early tender payment of $20.00 or €20.00 for notes tendered before noon ET on Aug. 2.

Pricing will be determined at 9:30 a.m. ET on Aug. 2.

Deutsche Bank AG, London Branch is the dealer manager (44 20 7545 8011). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 859-8511).

Smurfit Kappa is a subsidiary of Smurfit Kappa plc, a Dublin, Ireland-based producer of paper-based packaging.

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