Item 2.03Item 2.03 - Creation of Direct Financial Obligation
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of the Registrant.
On May 27, 2025, Crown Holdings, Inc. (the “Company”) completed its note offering of $700,000,000 aggregate principal amount of 5.875% senior unsecured notes due 2033 (the “Offering”). In connection with the Offering, Crown Americas LLC, a wholly-owned subsidiary of the Company (the “Issuer”), issued $700,000,000 aggregate principal amount of 5.875% senior unsecured notes due 2033 (the “Notes”). The net proceeds from the Offering will be used, together with cash on hand, to repay the 4.750% senior notes due 2026, and to pay related fees and expenses.
The Notes will mature on June 1, 2033 and will accrue interest at a rate of 5.875% per year. Interest on the Notes will be payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2025. The Issuer may redeem some or all of the Notes, at its option, at any time prior to June 1, 2028 by paying 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, and a make-whole premium. Thereafter, the Issuer may redeem all or some of the Notes at applicable redemption prices. In addition, on or prior to June 1, 2028, the Issuer may redeem up to 40% of the Notes with the net cash proceeds of certain equity offerings of capital stock of the Company that are contributed as capital or are used to subscribe for qualified capital stock of the Issuer.
The Notes were sold in a private placement and resold by the initial purchasers to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933 (the “Securities Act”) and to non-U.S. persons pursuant to Regulation S of the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
If the Issuer or the Company experiences a change of control repurchase event, the Issuer may be required to offer to purchase the Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.
The Notes are senior obligations of the Issuer. The Notes will be unconditionally guaranteed on a senior basis by the Company and, subject to applicable law and exceptions, certain of the Company’s current and future subsidiaries organized under the laws of the United States.
The Notes have been issued under an indenture with U.S. Bank Trust Company, National Association, as trustee. The indenture governing the Notes contain covenants that will limit the ability of the Company and its subsidiaries (including the Issuer) to, among other things, create liens, engage in sale and leaseback transactions or merge or consolidate with or into other companies. If an event of default, as specified in the indenture governing the Notes, shall occur and be continuing, either the trustee or the holders of a specified percentage of the Notes may accelerate the maturity of all the Notes. The covenants, events of default and acceleration rights described in this paragraph are subject to important exceptions and qualifications, which are described in the indenture filed herewith.
Under a registration rights agreement with the initial purchasers of the Notes, the Issuer has agreed to (a) use its reasonable best efforts to file and cause to become effective a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) with respect to a registered offer to exchange the Notes for new notes of the Issuer having terms substantially identical in all material respects to the Notes (except that the exchange notes will not contain terms with respect to transfer restrictions) and (b) use their reasonable best efforts to cause the registered
exchange offer to become completed under the Securities Act within 360 days of the issue date of the Notes. If the exchange offer is not completed within the periods specified in the registration rights agreement, applicable interpretation of the staff of the SEC prohibit the Issuer from effecting such a registered exchange offer or, under limited circumstances, if required by the initial purchasers of the Notes or a holder thereof, the Issuer has agreed to file, and to use their reasonable best efforts to cause to become effective, a shelf registration statement relating to resales of the Notes or the notes issued in the registered exchange offer, as the case may be. The Issuer will be obligated to pay additional interest on the Notes if, within the periods specified in the registration rights agreement, they do not complete the exchange offer, or, if required, file the shelf registration statement, the shelf registration statement has not been declared effective or, after the shelf registration statement has been declared effective, such registration statement thereafter ceases to be effective or useable (subject to certain exceptions).
The descriptions set forth above are qualified in their entirety by the indenture governing the Notes filed herewith as Exhibit 4.1, and the registration rights agreement filed herewith as Exhibit 4.2.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this Form 8-K consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied in the forward-looking statements. Other important factors that could cause the statements made in this Form 8-K or the actual results of operations or financial condition of the Company to differ are discussed under the caption “Forward Looking Statements” in the Company’s Form 10-K Annual Report for the year ended December 31, 2024 and in subsequent filings made prior to or after the date hereof.
The Company does not intend to review or revise any particular forward-looking statement in light of future events.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
