Stock Symbol: TSX - CCL.A and CCL.B
TORONTO, Sept. 23 /CNW/ - 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.
With headquarters in Toronto, Canada, CCL Industries now employs
approximately 5,500 people and operates 56 production facilities in North
America, Europe, Latin America and Asia Pacific. CCL Label is the world's
largest converter of pressure sensitive and film materials and sells to
leading global customers in the consumer packaging, healthcare, and consumer
durable segments. CCL Container and CCL Tube produce aluminum cans, bottles
and plastic tubes for the consumer products industry in North America.
Statements contained in this Press Release, other than statements of
historical facts, are forward-looking statements subject to a number of
uncertainties that could cause actual events or results to differ materially
from some statements made.
For further information:
For further information: Steve Lancaster, Executive Vice President and
Acting CFO, (416) 756-8517, For more details on CCL, visit our website -