Investors Load €600m Into Smurfit Kappa Despite Anxieties In The Market
Smurfit Kappa has expanded its senior bond issuance to €600 million after investors entered into a deal despite anxieties over the US-China trade war, according to the Irish Independent.
The Irish packaging giant is reported to be one of the few issuers that pressed ahead with a bond sale despite the conditions.
According to the packaging company, the notes are being offered in a private placement and there will be no public offering of the notes.
The senior notes have a coupon of 2.875% and are due to mature in 2026. It is believed that the group will use the funds to pay off any existing debts.
Smurfit Kappa fought off US firm International Paper, who were attempting to acquire the company on three counts. During which the group has seen its share spike to record highs only to fall from grace the following week.
Instead, it acquired Reparenco, a privately owned paper and recycling business in the Netherlands, for a cash consideration of approximately €460 million.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.