KappaPackaging.com.pl
Title
Kappa Gdansk
Description
1 December, 2005: Smurfit Kappa Group (the Group) today announced the completion of the merger between Jefferson Smurfit Group (JSG) and Kappa Packaging (Kappa).
The merger was completed through the issue of shares by JSG and the payment of consideration comprising cash of approximately €300 million and a €75 million subordinated promissory note to Kappa's shareholders. The final value of the cash consideration and promissory note will not be known until certain closing adjustments have been completed. The ownership structure is such that JSG's former shareholders own 58.3% of the Smurfit Kappa Group while Kappa's former shareholders own 41.7%.
As part of the merger agreement, the 10.625% Senior Subordinated Notes due 2009 and the 12.5% Senior Subordinated Discount Notes due 2009 issued by Kappa Beheer B.V. will be redeemed and both JSG's and Kappa's Senior Credit Facilities are being refinanced. The 11.5% Senior Notes due 2015 issued by JSG Holdings plc, the 9.625% and 10.125% Senior Notes due 2012 and the 7.75% Senior Subordinated Notes due 2015 issued by JSG Funding plc together with the Guaranteed Debentures due 2025 issued by Smurfit Capital Funding Ltd, the Receivables Securitisation Floating Rate Notes due 2011 issued by Smurfit Receivables plc and certain local debt will remain in place.
