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ÅR Packaging Raises EUR 35 Million in Subsequent Bonds to Finance MWV Acquisition

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ÅR Packaging Group AB, Lund, Sweden, has successfully placed a EUR35 million subsequent bond under the terms and conditions of its outstanding EUR80 million 3m EURIBOR + 5.75% bonds 2013/2017. Proceeds from the subsequent issue will, together with existing cash and a EUR15 million junior unsecured loan, fully finance the previously announced acquisition of the European folding carton operations of MeadWestvaco Corp., Richmond, Va., USA.
The bonds, maturing in July 2017, will bear a floating coupon of 3m EURIBOR + 5.75% (paid quarterly in arrears) and were placed at 101.50% of par. 

ÅR Packaging notes that the transaction was well received by the market, as indicated by a very strong demand and an oversubscribed book. Altogether, more than 25 institutional investors participated in the issue and due to the strong demand, the book closed the same day the transaction was launched in the market.  

"We are pleased to secure the financing of this important acquisition for AR Packaging. This clearly shows confidence in the company and that its performance during the last years has been well received by investors on the financial market" says Harald Schulz, CEO at AR Packaging.

Pareto Securities AB acted as sole bookrunner in connection with the bond issue.

ÅR Packaging is one of Europe's leading companies in the packaging sector with a turnover exceeding EUR400 million and 1,600 employees in 14 factories in seven countries. The company was formed in 2011 through a merger of A&R Carton, one of Europe's leading carton board packaging groups, and Flextrus, a flexible packaging leader in northern Europe. The group creates added value to customers by a broad product offering and deep knowledge of packaging.

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