Berry Global Group, Inc. and Glatfelter Corporation have announced a proposed offering of $500,000,000 in senior secured notes due 2031. The proceeds from the offering are intended to be used for various purposes including funding a portion of the cash distribution to Berry Global, Inc., repaying certain existing indebtedness of Glatfelter, and paying certain fees and expenses associated with the previously announced combination of Berry’s health, hygiene, and specialties global nonwovens and films business with Glatfelter in a reverse Morris trust transaction.
Upon closing of the transaction, the combined company will be renamed Magnera Corporation. The notes would be issued in lieu of the same amount of debt previously intended to be provided under Spinco’s new credit facilities, and such debt would be assumed by Magnera, assuming the closing of the transaction.
The notes are being offered only to qualified institutional buyers in reliance on rule 144a under the Securities Act of 1933 and outside the United States only to non-U.S. investors pursuant to Regulation S.
Berry Global Group, Inc., with over 40,000 global employees across more than 250 locations, creates innovative packaging solutions, leveraging its global capabilities, sustainability leadership, and deep innovation expertise to serve customers worldwide.
Glatfelter Corporation, with approximately 2,980 employees worldwide, is a leading global supplier of engineered materials with a strong focus on innovation and sustainability. In 2023, Glatfelter reported revenue of $1.4 billion.
The proposed offering signifies a significant financial transaction for Berry and Glatfelter as they move forward with the merger and the creation of Magnera Corporation. Today the company's shares have moved 0.2% to a price of $66.75. Check out the company's full 8-K submission here.
