Crown Holdings Announces Pricing of Euro 350 Million of Senior Secured Notes

PHILADELPHIA, Aug. 11 /PRNewswire-FirstCall/ -- Crown Holdings, Inc. (NYSE: CCK) today announced that it has priced euro 350 million of 6.25% first priority senior secured notes due 2011. The notes will be issued at par by Crown European Holdings SA, a subsidiary of the Company, and will be unconditionally guaranteed by the Company and certain of its subsidiaries. Alan Rutherford, Executive Vice President and Chief Financial Officer, commented, "We are extremely pleased with the demand for this issuance which we believe to be one of the largest and most competitively priced euro high yield offerings to date in 2004."

The Company has also received a commitment from Citicorp North America, Inc. to provide a new $125 million term loan with final maturity in 2011. The proceeds from the senior secured notes and new term loan will be used to repay the Company's existing term loans which mature in 2008.

In addition, the Company is reviewing the terms of a new revolving credit facility that would be used to refinance its existing revolving credit facility which matures in 2006. The new term loan and any proposed new revolving credit facility will close simultaneously with the euro 350 million first priority senior secured notes on September 1, 2004. The 6.25% first priority senior secured notes offering, the new term loan and any new revolving credit facilities are subject to certain conditions, including any required consents, and the final terms of the new term loan and revolving credit facilities are still under discussion with financing sources.

The senior secured notes are expected to be issued through a private placement and resold by the initial purchasers to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and Regulation S. The senior secured notes will not be 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. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security in any jurisdiction in which such offer or sale would be unlawful.

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the federal securities laws. 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. Important factors that could cause the statements made in this press release to differ include, without limitation, that the refinancing plan is subject to a number of conditions and approvals and the final terms may vary substantially as a result of market and other conditions. There can be no assurance that the refinancing plan will be completed as described or at all. Other important factors are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2003 and in subsequent filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

Crown Holdings, Inc., through its affiliated companies, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania.

SOURCE  Crown Holdings, Inc.
    -0-                             08/11/2004
    /CONTACT:  Timothy J. Donahue, Senior Vice President - Finance, Crown
Holdings, +1-215-698-5088/
    /Web site:  http://www.crowncork.com /
    (CCK)

CO:  Crown Holdings, Inc.; Crown European Holdings SA
ST:  Pennsylvania
IN:
SU:  OFR FNC

PD 
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6724 08/11/2004 16:29 EDT http://www.prnewswire.com