Ball Corp. securing final financing for Rexam acquisition

BROOMFIELD — Can manufacturer Ball Corp. (NYSE: BLL) on Tuesday said it has begun the process to obtain approximately $3.9 billion in senior revolving and term loans that represents the final portion of financing related to Ball’s acquisition of London-based Rexam PLC.

Broomfield-based Ball announced in February 2015 that it wanted to buy metal beverage can maker Rexam in a cash-and-stock deal valued at about $6.7 billion in order to stay competitive against other packaging companies. Ball expects to close on its proposed offer for Rexam in the first half of 2016.

The new credit will refinance Ball’s existing revolver and bridge term loans entered into Feb. 19, 2015. The new loans will mature in 2021.

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In November, Ball Corp. set out to raise $2.5 billion through the public offering of senior notes to fund the cash portion of the acquisition. Ball also said it would sell 11 of its plants in Europe in order to clinch approval from European Union antitrust regulators. Ball also is in discussions with antitrust authorities in the United States regarding assets it may have to divest here.

The Ball Corp. and Rexam union would create the world’s largest consumer packaging supplier, with command of more than 60 percent of the beverage-can market in North America, 69 percent in Europe and 74 percent in Brazil. The combined company would employ a workforce of about 22,500 employees across five continents and generate annual revenue of about $15 billion.