Business Context and Reporting Period
Company: BALL Corp
Filing Type: Form 8-K (Current Report)
Date of Report: June 13, 2013
Event: Entry into a Material Definitive Agreement (Amended and Restated Credit Agreement).
Key Financial Metrics and Debt Structure
This filing details a refinancing of the company's credit facilities. The filing does not provide current revenue, profit, cash flow, or margin data.
| Facility Type | Amount | Maturity Date |
|---|---|---|
| Multicurrency Revolving Facility | US$850 million | June 13, 2018 |
| French Revolving Facility | US$150 million | June 13, 2018 |
| Term B Loan Facility | £38.25 million | June 13, 2018 |
| Term C Loan Facility | €83.75 million | June 13, 2018 |
Interest Rates: LIBOR or Base Rate plus a margin based on the Company's leverage ratio.
Collateral: First priority lien on 100% of stock of material domestic subsidiaries and 65% of stock of material first-tier foreign subsidiaries.
Material Changes Versus Prior Period
The new Credit Agreement amends and restates the credit agreement dated December 21, 2010. The filing does not explicitly quantify the change in total debt capacity compared to the prior agreement, but it establishes new facility limits and extends the maturity to 2018.
Guidance, Covenants, and Risks
Financial Maintenance Covenants:
- Maximum Leverage Ratio: 4.00 to 1.00
- Minimum Interest Coverage Ratio: 3.50 to 1.00
Risks: An event of default may result in the termination of commitments and immediate acceleration of all outstanding principal and accrued interest.
Investor Verification Checklist
- Verify the Company's current leverage and interest coverage ratios to ensure compliance with the new 4.00:1.00 and 3.50:1.00 covenants.
- Review the full text of the Amended and Restated Credit Agreement (Exhibit 10.1) for specific definitions of "Leverage Ratio" and "Interest Coverage Ratio."
- Confirm the extent of collateral pledged, specifically the 65% stake in foreign subsidiaries.
- Assess the impact of the new interest rate margins on future debt service costs relative to the prior 2010 agreement.