Berry Global Plans Senior Secured Notes Offering Ahead of Merger

Berry Global’s Strategic Offering of Senior Secured Notes

In an exciting development, Berry Global Group, Inc. (NYSE:BERY) has outlined plans for the issuance of senior secured notes through its subsidiary, Treasure Escrow Corporation. This move is a crucial step in conjunction with the anticipated merger of Berry's Health, Hygiene and Specialties Global Nonwovens and Films business with Glatfelter Corporation (NYSE:GLT).

Details on the Proposed Offering

The proposed offering involves $500,000,000 worth of senior secured notes due in 2031. The funds raised from this offering will primarily support a cash distribution to Berry Global, Inc. and help in settling existing debts of Glatfelter. Additionally, it will serve to cover certain costs related to the merger transaction.

Uses for the Proceeds

Specifically, the proceeds are earmarked to facilitate aspects of the transaction with Glatfelter, a notable player in the engineered materials space. Once the merger is finalized, the newly combined entity will operate under the name Magnera Corporation. The integration promises to enhance operational capabilities and significantly impact the nonwovens and hygiene films market.

Regulatory Framework and Offering Structure

The offering is intended strictly for qualified institutional buyers under SEC Rule 144A, and it will also cater to non-U.S. investors globally under Regulation S guidelines. It is important to note that these notes have not been registered with the Securities and Exchange Commission and cannot be sold unless in compliance with the applicable laws.

Escrow Account Safeguards

To ensure a seamless revenue flow, all proceeds from the notes offering will initially be placed in a segregated escrow account. This secured fund will remain intact until the merger conditions are fully satisfied and the obligations of the Issuer under the notes are assumed by Magnera. This cautious approach illustrates Berry's commitment to safeguarding the interests of the note holders.

The Vision of Berry Global

Berry Global continues to innovate within the packaging industry, striving to create solutions that enhance life for people and promote sustainability. With a workforce of over 40,000 employees globally, the company keeps client collaboration at the forefront, designing innovative products aimed at a circular economy.

Glatfelter’s Role in the Merger

As a leader in the supply of engineered materials, Glatfelter plays a pivotal role in the operational framework of the merged entity. With a revenue of approximately $1.4 billion, Glatfelter has pioneered the development of high-quality nonwovens solutions, serving various applications from hygiene products to industrial applications, thus enhancing everyday life for countless consumers.

Looking Ahead: The Future of Berry and Glatfelter

As Berry prepares for this substantial merger with Glatfelter, stakeholders are optimistic about the synergies that will emerge. The envisaged combination is set to not only bolster their market position but also foster innovation that aligns with market demands and consumer needs.

Investor Communication

Berry's communication strategy will remain transparent, keeping investors updated as the merger progresses. Contact information for key representatives has been made available, ensuring that investors can seek clarifications as necessary.

Frequently Asked Questions

What is the purpose of Berry Global's new offering?

The offering aims to raise funds to support cash distributions related to the merger with Glatfelter and repay outstanding debts.

What will happen to the proceeds from the notes?

Proceeds will be placed in a segregated escrow account until merger conditions are met and obligations are assumed by the new entity, Magnera.

Is the offering restricted?

Yes, the notes are offered only to qualified institutional buyers and outside the U.S. to non-U.S. investors.

Who will manage the newly formed company?

The new company, Magnera Corporation, will bring together leadership from both Berry and Glatfelter, focusing on delivering innovative solutions.

How can investors get more information?

Investors are encouraged to reach out to designated contacts for further inquiries and stay tuned for official updates from Berry Global.

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