Author Topic: BERY - Berry Plastics Group  (Read 20587 times)

thepupil

  • Hero Member
  • *****
  • Posts: 1903
Re: BERY - Berry Plastics Group
« Reply #100 on: August 22, 2020, 04:56:22 AM »
Another $100mm debt redemption.

http://ir.berryglobal.com/node/12551/html

I see a total of $300mm for August. 3 separate 8-k’s on the 3rd,11th,21st. $100mm each all at 5 1/8.

I feel like they could be gearing up for a big refi that will cheapen / term out the debt load like some  3% of 2030 type of paper.

I’d be okay with them monetizing a little of the stock’s volatility and issuing a very low cost convertible, if the strike was sufficiently OTM
« Last Edit: August 22, 2020, 05:39:32 AM by thepupil »


BG2008

  • Hero Member
  • *****
  • Posts: 1712
Re: BERY - Berry Plastics Group
« Reply #101 on: September 15, 2020, 02:47:06 PM »
Redeeming another $200mm of 6% debt, this is pretty incredible for a company to pay down the debt the way they are in a crazy year like this

https://ir.berryglobal.com/node/12561/html

thepupil

  • Hero Member
  • *****
  • Posts: 1903
Re: BERY - Berry Plastics Group
« Reply #102 on: September 16, 2020, 05:34:28 AM »
Redeeming another $200mm of 6% debt, this is pretty incredible for a company to pay down the debt the way they are in a crazy year like this

https://ir.berryglobal.com/node/12561/html

So you may already know this, but I was confused by this because I thought the 6%'s were already gone.

In actuality, Berry made a mistake and thought their 6% were callable at par in July, then realized they actually were callable at $101.5 until October 15th 2020.

So depending on whether or not you caught the correction / 8-K explaining the mistake, this does/doesn't represent new debt reduction.

I have $1.6B of 2nd priority bonds after the 6% of 2022 are gone, does everyone agree with that?


Quote
Item 8.01   Other Events.
On July 1, 2020, Berry Global, Inc. (“BGI”), a wholly owned subsidiary of Berry Global Group, Inc. (the “Company”), elected to redeem in full the $200 million aggregate principal amount remaining outstanding of its 6.00% Second Priority Senior Secured Notes due 2022 (the “Notes”) in accordance with the terms of the indenture governing the Notes. As specified in the Notice provided to the holders of the Notes, the Notes are called for redemption on July 31, 2020 (the “Redemption Date”). The redemption price for the Notes shall be equal to 100% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the Redemption Date. BGI intends to fund the redemption amount with cash on hand.

Item 9.01   Financial Statements and Exhibits.
This Amendment No. 1 on Form 8-K/A (this “Amendment”) is being filed by Berry Global Group, Inc. (the “Company”) to amend the Current Report on Form 8-K filed on July 1, 2020.

Item 8.01 Other Events.
On July 2, 2020, Berry Global, Inc. (“BGI”), a wholly owned subsidiary of Berry Global Group, Inc., notified the trustee under the indenture (the “Indenture”) governing its 6.00% Second Priority Senior Secured Notes due 2022 (the “Notes”) that the notice of redemption issued to holders of the Notes on July 1, 2020 (the “Redemption Notice”) incorrectly provided that the redemption price for the Notes would be equal to 100.000% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. Pursuant to the terms of the Notes and the Indenture, the Notes cannot be redeemed for less than 101.500% of the aggregate principal amount thereof prior to October 15, 2020. Consequently, BGI has directed the trustee under the Indenture to cause notice to be issued to holders of the Notes that the Redemption Notice was invalid and has been rescinded by BGI.
« Last Edit: September 16, 2020, 05:36:01 AM by thepupil »

BG2008

  • Hero Member
  • *****
  • Posts: 1712
Re: BERY - Berry Plastics Group
« Reply #103 on: September 16, 2020, 07:34:19 AM »
Thanks for pointing this out.  This is exactly the kind of feedback that makes CoB so useful.  Sometimes, you glance over things.  The CoB wolf pack watches out for each out.  Can we get matching tattoos Pupil.  I think "Bricks over Chicks" is so rad.   

dwy000

  • Hero Member
  • *****
  • Posts: 674
Re: BERY - Berry Plastics Group
« Reply #104 on: September 16, 2020, 08:34:54 AM »
From the filing, it appears they aren't gone quite yet but will be on Oct 16th.  The indenture required a price of 101.5 until Oct 15th so they chose to delay the redemption a month to do it at par.  But they will be gone next month.  That was my read of it.

dwy000

  • Hero Member
  • *****
  • Posts: 674
Re: BERY - Berry Plastics Group
« Reply #105 on: September 16, 2020, 08:36:27 AM »
From the filing, it appears they aren't gone quite yet but will be on Oct 16th.  The indenture required a price of 101.5 until Oct 15th so they chose to delay the redemption a month to do it at par.  But they will be gone next month.  That was my read of it.

The slight difference here being the actual debt outstanding at end of 3Q will include the bonds.  On a net basis (net of cash) it won't make a difference but the headline debt will still be there.  I don't think it affects any covenants.