CCL Industries Inc., a world leader in the development of labelling solutions and specialty packaging for the consumer products and healthcare industries, announced today that it has entered into a private placement financing of Senior Unsecured Notes with U.S. institutional investors.
The amount of the borrowing totals US$ 130 million with US$ 52 million to be repaid in five years and US$ 78 million to be repaid in 10 years. Interest rates for the five-year and ten-year financing are 5.86% and 6.62% respectively. Closing and funding are expected by Friday, September 26 subject to the satisfactory completion of due diligence and documentation.
Donald Lang, Executive Chairman of CCL Industries said, "We are extremely pleased to have entered into this financing despite the most difficult credit markets that have been seen in decades. The private placement included many previous lenders and one new significant lender and indicates the market's confidence in CCL and our strategy. The cash from this debt offering provides CCL with a strong foundation for the foreseeable future."
Proceeds from the transaction will be used to repay bank debt with the balance for general corporate purposes. -- www.cnxmarketlink.com
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