Smurfit Westrock plc (SW, Financial), a leading global packaging company, has announced the successful issuance of senior notes through its subsidiaries, Smurfit Westrock Financing Designated Activity Company and Smurfit Kappa Treasury Unlimited Company. The offerings, which took place on November 26 and 27, 2024, respectively, include $850 million in 5.418% senior notes due 2035 and €1.2 billion in senior notes split between 3.454% notes due 2032 and 3.807% notes due 2036.
The proceeds from these offerings are earmarked for strategic financial maneuvers, including the redemption of existing notes and general corporate purposes. Specifically, the funds will be used to redeem $750 million of 4.650% senior notes due 2026 and €1 billion of 2.875% senior notes due 2026. Additionally, Smurfit Westrock plans to allocate an equivalent amount of the proceeds to finance or refinance eligible green projects under its Green Finance Framework.
The senior notes were offered in the United States to qualified institutional buyers and outside the United States to non-U.S. persons, adhering to the regulations under the U.S. Securities Act of 1933. The notes are fully and unconditionally guaranteed on a senior basis by Smurfit Westrock and certain subsidiaries, ensuring robust backing for investors.
These financial instruments come with specific terms, including semi-annual interest payments for the USD notes and annual payments for the EUR notes. The company has also outlined redemption options prior to maturity, providing flexibility in managing its debt obligations.
In addition to the senior notes offerings, Smurfit Westrock has amended its commercial paper program to include the USD Issuer as a guarantor, further strengthening its financial structure. This move aligns with the company's ongoing efforts to optimize its capital structure and support its strategic growth initiatives.
Smurfit Westrock's proactive approach in managing its financial obligations and commitment to sustainable projects underscores its strategic vision and operational resilience. These offerings not only enhance the company's financial flexibility but also reinforce its dedication to environmental sustainability.
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