DOW JONES NEWSWIRES
Ball Corp. (BLL) plans to offer about $650 million in seven-year
and 10-year senior notes to fund and the planned $577 million
acquisition of beverage-can plants from Anheuser-Busch InBev NV
(ABI.BT).
The plastic and metal packaging company is just the latest to
tap credit markets in recent months amid a resurgence in investors'
interest.
Ball said if the acquisition is not completed, the company plans
to use the proceeds for general corporate purposes, such as
possible acquisitions, capital spending, share repurchases and
repayment of debt.
Ball, like other packaging companies, has cut costs, shut plants
and trimmed inventory amid weakened demand. In May, however,
Moody's Investors Service said effective cost management had led
the U.S. packaging industry to see a rebound in volume. In
reporting second-quarter earnings last month, Chairman and Chief
Executive David Hoover said he expected Ball's 2009 earnings to top
last year's and expected "continued improvement" for the rest of
this year.
Shares recently were down 46 cents at $46.82 amid a broad market
downturn.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com
