Crown Holdings, Inc. (NYSE: CCK) announced a cash tender offer to redeem all outstanding 7 3/8% debentures due 2026, totaling $350 million in principal. The company will pay $1,036.53 for each $1,000 of debenture tendered, a fixed spread of 15 basis points above the 4.375% Treasury yield on the 12/15/2026 benchmark. The offer, managed by Crown Cork & Seal Company, Inc., is set to close on November 21, 2025, with the settlement date for accepted tendered amounts.
At the time of the offer’s expiration, $317.295 million of the $350 million principal had been tendered, leaving $32.705 million of outstanding debentures. The pricing terms were determined using a reference Treasury yield of 3.693%, which, when combined with the 15‑basis‑point spread, yields the $1,036.53 redemption price. The settlement date of November 21, 2025, allows holders to receive payment within a standard two‑day settlement window.
Crown’s decision to redeem the 2026 debentures follows a period of aggressive debt repayment and capital return. In Q3 2025, the company reported net income of $214 million and adjusted diluted EPS of $2.24, an increase from the prior year, and raised its full‑year 2025 adjusted diluted EPS guidance to $7.70‑$7.80. The strong earnings performance and healthy cash flow position give Crown the flexibility to execute the tender offer and further strengthen its balance sheet.
By reducing long‑term debt, Crown will lower its interest expense and free up cash flow for future investments and potential share repurchases. The redemption also improves leverage ratios, supporting the company’s disciplined capital allocation strategy and positioning it to pursue growth opportunities in the rigid packaging market without the burden of higher debt servicing costs.
The tender offer reflects Crown’s broader strategy of proactive debt management, which has included a €500 million note offering in September 2025 and a $700 million note issuance in May 2025. These actions demonstrate the company’s commitment to maintaining a strong financial foundation while returning value to shareholders through disciplined capital deployment.
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