8-KOther EventsExhibits & Filings

Amcor plc 8-K Report, Corporate Update (May 26, 2023)

Filed May 26, 2023For Securities:AMCRAMCCF

Summary

Amcor plc, through its subsidiary Amcor Finance (USA), Inc., has successfully issued $500 million in Guaranteed Senior Notes due 2033 with a coupon rate of 5.625%. This issuance, backed by guarantees from Amcor plc and other subsidiaries, aims to strengthen the company's balance sheet by repaying existing commercial paper borrowings and for general corporate purposes, including other debt obligations. The notes will mature on May 26, 2033, with interest payments semi-annually. This move signals Amcor's proactive approach to managing its debt structure and financing needs. Investors should note that the net proceeds after underwriting fees and expenses are expected to be approximately $491 million. This capital infusion provides Amcor with financial flexibility and underscores its commitment to maintaining a robust financial position. The company has engaged prominent underwriters for this transaction, indicating confidence in the offering's success.

Key Highlights

  • 1Amcor Finance (USA), Inc. issued $500 million in 5.625% Guaranteed Senior Notes due 2033.
  • 2Amcor plc and its subsidiaries (Amcor UK, Amcor Australia, AFNA) provided full and unconditional guarantees for the notes.
  • 3Net proceeds from the offering are approximately $491 million.
  • 4Proceeds are intended to repay commercial paper borrowings and for general corporate purposes, including other debt.
  • 5Interest payments are scheduled semi-annually, on May 26 and November 26.
  • 6The notes mature on May 26, 2033.
  • 7The offering was underwritten by major financial institutions including J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., and Wells Fargo Securities, LLC.

Frequently Asked Questions

The primary purpose of issuing these notes is to repay a portion of Amcor's commercial paper borrowings. The remaining proceeds, if any, will be used for general corporate purposes, which may include repaying other short- and long-term debt.

Amcor Finance (USA), Inc. is the issuer of the notes. However, Amcor plc, Amcor UK Finance plc, Amcor Pty Ltd, and Amcor Flexibles North America, Inc. have each provided a full and unconditional guarantee of the notes, meaning they are jointly and severally liable for repayment.

The notes carry a fixed interest rate of 5.625% per annum, payable in arrears on May 26 and November 26 of each year, starting November 26, 2023. The notes will mature on May 26, 2033.

Amcor expects to receive approximately $491 million in net proceeds from the sale of the $500 million aggregate principal amount of notes after deducting underwriting discounts and estimated offering expenses.