Jefferson Smurfit to Sell 300 Million (USD) Sr. Notes

CHICAGO, IL, USA—Smurfit-Stone Container Corp. recently announced that Jefferson Smurfit Corp. (US), an indirect wholly owned subsidiary of Smurit-Stone, has entered into an agreement to sell $300 million (US) of 7.5 percent senior notes due 2013 (identified as "the Notes").

According to the paperboard and paper-based packaging giant, the Notes will be guaranteed by JSCE, Inc., a wholly owned sub. of Smurit-Stone and the sole stockholder of Jefferson Smurift Corp. (US). The co. adds the Notes will rank equally with all of Jefferson Smurfit's other senior unsecured indebtedness.

The co.'s press release states:

Proceeds from the Note issuance (after deduction of discounts, commissions, fees, and other expenses associated with the sale of the Notes) will be used to repay $175 million Tranche A term loan borrowings and approximately $122 million of the outstanding Tranche B term loan borrowings under the Jefferson Smurfit Corporation (US) credit agreement.

The Notes are being sold to qualified institutional buyers in reliance on Rule 144A. The Notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and, unless, so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The company has agreed that after the issuance of the Notes, it will file a registration statement related to an exchange offer for the Notes under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Visit Smurfit-Stone at smurfit-stone.com.



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