Ball Corp. repriced its euro-denominated "B" loan to bring it closer in line to its U.S. funding costs, according to Scott Morrison, Ball's v.p. and treasurer. Ball paid down the loan to E230 million from E266 million and repriced the credit from EURIBOR plus 21/2% down to EURIBOR plus 2%. "Our performance has been very strong so we had cash flow to pay down the loan," Morrison said. "The 'B' loan market is very robust and I think it allowed us to lower the pricing." Ball put the euro debt in place as part of the financing package for an acquisition in 2002. Morrison believes the European "B" loan market is "not as robust as it is over here, but it's getting better."
A combination of European and U.S. investors are involved in the facility. "Essentially all of the holders stayed after the repricing," Morrison noted. Deutsche Bank led the repricing as well as the original facility. "They have a good leveraged finance group and they had capabilities in Europe and the U.S.," Morrison said, explaining the company's choice of lead bank.
Ball currently has the equivalent of $233 million in European-denominated debt, including an "A" loan that has a E96 million component and a £63 million tranche. The "A" loan price is based on a grid and is currently at EURIBOR plus 13/4%. Ball also has a $187 million "B" loan priced at LIBOR plus 13/4% and a revolver that was not drawn at year-end. The dollar-denominated "B" loan was repriced last year. Ball supplies metal and plastic packaging to the food and beverage industries.