Berry and Glatfelter finalize $800 million notes offering for merger

On October 10, 2024, Berry Global Group, Inc. and Glatfelter Corporation, both prominent players in the nonwovens and hygiene films industry, revealed the pricing of an upsized offering of senior secured notes totaling $800 million. This financial maneuver is part of a broader strategy to facilitate a proposed merger between the two companies, which aims to enhance their market position and operational efficiencies. The offering is being conducted by Treasure Escrow Corporation, a wholly owned subsidiary of Berry. The proceeds from the notes will serve multiple purposes, including funding a cash distribution to Berry Global's subsidiary, BGI, and repaying certain existing debts held by Glatfelter. This financial restructuring is crucial for both companies as they prepare for the merger, which is expected to create a more robust entity in the market. Upon completion of the merger, the combined company will be rebranded as Magnera Corporation. This name change signifies a new chapter for both organizations, reflecting their commitment to innovation and growth in the nonwovens sector. The merger is anticipated to yield significant benefits, including improved financial performance and operational synergies. However, the transaction is subject to various risks, including shareholder approvals and regulatory clearances. The companies have filed necessary documentation with the SEC, urging stakeholders to review these materials for comprehensive insights into the proposed transaction and its implications for the industry.