Amcor Plc has announced a consent solicitation from all registered holders of Berry Global, Inc.'s outstanding notes. The purpose of the consent solicitations is to amend each indenture so that, in the event that Amcor provides an unconditional guarantee of Berry's payment obligations with respect to a series of notes, the liens on all of Berry's collateral granted to secure such series of notes will be released upon request of Berry. Amcor is also soliciting consents for the proposed amendments to provide identical credit support to the notes as the Amcor notes after the consummation of the merger and the repayment of the Berry 2026 notes.
The record date for the consent solicitations is 5:00 p.m., New York City time, on February 25, 2025, and the consent solicitations will expire at 5:00 p.m., New York City time, on March 5, 2025, unless extended by Amcor in its sole discretion.
If holders of at least two-thirds (66 2/3%) in aggregate principal amount then outstanding of a series of notes validly deliver consents to the proposed amendments and do not validly revoke such consents, they will be eligible to receive a cash payment equal to €2.50 per €1,000 principal amount for the 1.50% first priority senior secured notes due 2027, and $2.50 per $1,000 principal amount for the 1.65% first priority senior secured notes due 2027, the 5.50% first priority senior secured notes due 2028, the 5.800% first priority senior secured notes due 2031, and the 5.650% first priority senior secured notes due 2034.
Goldman Sachs & Co. LLC and UBS Investment Bank are the lead solicitation agents of the consent solicitations, and BofA Securities, Inc., J.P. Morgan Securities LLC, J.P. Morgan Securities PLC, and Mizuho Securities USA LLC are the co-solicitation agents in the consent solicitations. Global Bondholder Services Corporation has been retained to serve as the information agent and tabulation agent.
Amcor generated $13.6 billion in annual sales from operations that span 212 locations in 40 countries in fiscal year 2024, while Berry Global Group, Inc. manufactures and supplies non-woven, flexible, and rigid products in consumer and industrial end markets in the United States, Canada, Europe, and internationally. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $10.1. For more information, read the company's full 8-K submission here.
