January 12, 2018 at 8:44 p.m.
Ardagh chief awaits a windfall
Business Roundup
The chairman of Ardagh Group has a 100 million Euro windfall heading his way, according to The Irish Times.
The newspaper reported this week that ARD Holdings, which is the “ultimate parent” of Ardagh Group, plans to raise $350 million (291.4 million Euros) by issuing payment-in-kind notes that are to be repaid in 2023. And most of that money will be used to “provide liquidity to its shareholders,” the company said.
The largest of those shareholders is Ardagh chairman Paul Coulson, who has a 36 percent interest in the holding company.
Ardagh Group has glass container manufacturing plants in Dunkirk and Winchester. The company also produces metal packaging in addition to glass internationally.
“The deal was announced even as US bond prices wobbled and some high-profile debt investors called an end to a three-decade-old bull market,” The Irish Times said.
“While market sources said ARD Holdings would most likely resort to special dividends to give cash to shareholders, it could also undertake a share buyback.”
Ardagh Group raised $350 million in March through an initial public offering of its shares on the New York Stock Exchange. Its total debt at the end of September stood at 7 billion Euros, down from 8.14 Euros in December of 2016.
“The intention to issue a (payment in kind) note highlights the credit market’s continued support towards Ardagh, and its confidence in Ardagh’s cash generation potential,” said analyst Barry Dixon told The Irish Times. “Ardagh has historically proven itself adept at taking advantage of favorable market conditions and operating with a high degree of leverage to maximize shareholder returns.”
Joint venture
Motherson Sumi Systems, parent of MSSL Wiring Systems of Portland, has announced a joint venture with a company called Ossia aimed at bringing wireless power to the car and truck market.
Ossia has developed the Cota power system which safely delivers targeted energy to devices at a distance and uses radio frequency to charge a range of devices, according to reports in the Indian business press.
The joint venture and Motherson Innovations is aimed at the introduction of Cota technology into a wide range of passenger and public transportation by 2021, delivering constant wireless power to personal devices and various sensors in vehicles.
Motherson Innovations is a subsidiary of Samvardhana Motherson Automotive Systems Group BV (SMRPBV). SMRPBV is joint venture between Motherson Sumi Systems Limited, the flagship company of Samvardhana Motherson Group Company and Samvardhana Motherson International Limited.
Third house
State Sen. Travis Holdman and Rep. Greg Beumer are scheduled to take part in a Third House Session sponsored by Jay County Chamber of Commerce this morning.
The event is set for 10 a.m. today at Community Resource Center in Portland.
Pay boost
CNBC reported this week that Walmart will be boosting its starting wage rate for hourly workers to $11 an hour. The change is related to the new tax legislation, the company said.
Walmart will also expand its maternity and parental leave benefits and provide a one-time cash bonus for eligible employees.
At the same time, the company announced that it would close 63 of its 660 Sam’s Club stores.
Meeting reminder
The annual members’ meeting of Jay County Chamber of Commerce is set for noon Jan. 25 at Jay Community Center in Portland. The luncheon meeting is free to chamber members, but reservations are necessary.
To reserve a seat, email [email protected] or phone (260) 726-4481.
The deadline for reservations is Jan. 19.
Smith speaks
The former chief executive officer of Tyson Foods Inc., parent company of Tyson Mexican Original of Portland, urged a University of Nebraska-Lincoln audience this week to speak up for conventional agriculture practices criticized by environmental and health activists, the Omaha World-Journal reported.
Donnie Smith, who retired from Tyson Foods in 2016 and still consults for the company, compared concern over genetically modified food ingredients and large-scale livestock operations to a “War of the Worlds” radio report of Martians, saying misinformation is spreading online.
“Removed from the farm, consumers today are ‘gullible’ to what they read on social media and see in documentary-style films that criticize farm practices, the newspaper reported Smith saying. “They have no idea how their food gets to their table,” he said.
Smith urged the university and individual farmers to use social media and speaking engagements to promote agricultural technologies such as GMO crops.
“Teach students to tell the story ... in a way their peer group can understand,” Smith said.
The speech was sponsored by the University of Nebraska-Lincoln’s Institute of Agriculture and Natural Resources.
Titanium deal
Allegheny Technologies Inc., parent company of Portland Forge, has signed two long-term deals with General Dynamics to provide titanium plates for defense vehicles, The Pittsburgh Post-Gazette reported this week.
The newspaper said the deals are expected to generate $75 million in sales over the life of the contracts. The work will involve ATI’s plants in Richland, Washington, and Washington, Pennsylvania.
The plates will be used for the Abrams tank and an armored fighting vehicle used by the British Army known as the AJAX specialist vehicle.
Quarterly report
Walgreens Boots Alliance, parent company of the Walgreens pharmacy chain, reported results from the quarter ending Nov. 30.
The company reported adjusted earnings per share of $1.28, which was 2 cents per share above expectations of most Wall Street analysts. Gross revenue grew 7.9 percent to $30.74 per share.
Phasing out
McDonald’s will stop using plastic foam cups by the end of this year, the Chicago Tribune reported this week.
The fast food giant pans to use “100 percent fiber-based packaging” by 2020.
“We also plan to eliminate foam packaging from our global system by the end of 2018,” the company states on its website.
Issuing notes
Arby’s Restaurant Group Inc., parent company of the fast food chain, this week announced that a newly formed, direct parent entity, IRB Holding Corp., intends to offer $485 million of its senior notes due 2026.
Arby’s intends to use the net proceeds along with the proceeds from certain other financing transactions and cash on hand, to finance its pending acquisition of Buffalo Wild Wings, Inc.
Proceeds will also be used to refinance certain existing indebtedness of Buffalo Wild Wings and pay fees and expenses related to the foregoing transactions, the company said in a press release.
Once the acquisition is complete, Buffalo Wild Wings will be a privately held sister company of Arby’s and will continue to operate as an independent brand.
Bonusing
Waste Management, which operates the Jay County Landfill, announced Wednesday that it will join those companies giving employee bonuses as a result of the lower corporate tax rate.
The company will give $2,000 in special bonuses to about 34,000 employees.
Abatement sought
The developer of a 136-room Hampton Inn planned for downtown Fort Wayne near Parkview Field is seeking a tax abatement, The News-Sentinel reported this week.
White Lodging, Merrillville, is investing $17.8 million in the project and is seeking an abatement that would reduce its property taxes by $3.23 million over 10 years.
The new hotel will be adjacent to the company’s Courtyard by Marriott hotel on West Jefferson Boulevard and will feature a rooftop food and beverage venue with views of the baseball field.
On-Ramp
The Indiana Arts Commission has announced the launch of a program called On-Ramp aimed at assisting artists and other creative types in “energizing their business thinking.”
The On-Ramp accelerator involves a 3-day Creative Entrepreneur Course to be held May 12 to 20 in Madison, Indiana. Those who complete the course can apply for a fellowship that includes up to $2,000 in project funding.
Applications must be submitted online by March 1.
For more information, go to http://www.in.gov/arts/onramp.htm.
The newspaper reported this week that ARD Holdings, which is the “ultimate parent” of Ardagh Group, plans to raise $350 million (291.4 million Euros) by issuing payment-in-kind notes that are to be repaid in 2023. And most of that money will be used to “provide liquidity to its shareholders,” the company said.
The largest of those shareholders is Ardagh chairman Paul Coulson, who has a 36 percent interest in the holding company.
Ardagh Group has glass container manufacturing plants in Dunkirk and Winchester. The company also produces metal packaging in addition to glass internationally.
“The deal was announced even as US bond prices wobbled and some high-profile debt investors called an end to a three-decade-old bull market,” The Irish Times said.
“While market sources said ARD Holdings would most likely resort to special dividends to give cash to shareholders, it could also undertake a share buyback.”
Ardagh Group raised $350 million in March through an initial public offering of its shares on the New York Stock Exchange. Its total debt at the end of September stood at 7 billion Euros, down from 8.14 Euros in December of 2016.
“The intention to issue a (payment in kind) note highlights the credit market’s continued support towards Ardagh, and its confidence in Ardagh’s cash generation potential,” said analyst Barry Dixon told The Irish Times. “Ardagh has historically proven itself adept at taking advantage of favorable market conditions and operating with a high degree of leverage to maximize shareholder returns.”
Joint venture
Motherson Sumi Systems, parent of MSSL Wiring Systems of Portland, has announced a joint venture with a company called Ossia aimed at bringing wireless power to the car and truck market.
Ossia has developed the Cota power system which safely delivers targeted energy to devices at a distance and uses radio frequency to charge a range of devices, according to reports in the Indian business press.
The joint venture and Motherson Innovations is aimed at the introduction of Cota technology into a wide range of passenger and public transportation by 2021, delivering constant wireless power to personal devices and various sensors in vehicles.
Motherson Innovations is a subsidiary of Samvardhana Motherson Automotive Systems Group BV (SMRPBV). SMRPBV is joint venture between Motherson Sumi Systems Limited, the flagship company of Samvardhana Motherson Group Company and Samvardhana Motherson International Limited.
Third house
State Sen. Travis Holdman and Rep. Greg Beumer are scheduled to take part in a Third House Session sponsored by Jay County Chamber of Commerce this morning.
The event is set for 10 a.m. today at Community Resource Center in Portland.
Pay boost
CNBC reported this week that Walmart will be boosting its starting wage rate for hourly workers to $11 an hour. The change is related to the new tax legislation, the company said.
Walmart will also expand its maternity and parental leave benefits and provide a one-time cash bonus for eligible employees.
At the same time, the company announced that it would close 63 of its 660 Sam’s Club stores.
Meeting reminder
The annual members’ meeting of Jay County Chamber of Commerce is set for noon Jan. 25 at Jay Community Center in Portland. The luncheon meeting is free to chamber members, but reservations are necessary.
To reserve a seat, email [email protected] or phone (260) 726-4481.
The deadline for reservations is Jan. 19.
Smith speaks
The former chief executive officer of Tyson Foods Inc., parent company of Tyson Mexican Original of Portland, urged a University of Nebraska-Lincoln audience this week to speak up for conventional agriculture practices criticized by environmental and health activists, the Omaha World-Journal reported.
Donnie Smith, who retired from Tyson Foods in 2016 and still consults for the company, compared concern over genetically modified food ingredients and large-scale livestock operations to a “War of the Worlds” radio report of Martians, saying misinformation is spreading online.
“Removed from the farm, consumers today are ‘gullible’ to what they read on social media and see in documentary-style films that criticize farm practices, the newspaper reported Smith saying. “They have no idea how their food gets to their table,” he said.
Smith urged the university and individual farmers to use social media and speaking engagements to promote agricultural technologies such as GMO crops.
“Teach students to tell the story ... in a way their peer group can understand,” Smith said.
The speech was sponsored by the University of Nebraska-Lincoln’s Institute of Agriculture and Natural Resources.
Titanium deal
Allegheny Technologies Inc., parent company of Portland Forge, has signed two long-term deals with General Dynamics to provide titanium plates for defense vehicles, The Pittsburgh Post-Gazette reported this week.
The newspaper said the deals are expected to generate $75 million in sales over the life of the contracts. The work will involve ATI’s plants in Richland, Washington, and Washington, Pennsylvania.
The plates will be used for the Abrams tank and an armored fighting vehicle used by the British Army known as the AJAX specialist vehicle.
Quarterly report
Walgreens Boots Alliance, parent company of the Walgreens pharmacy chain, reported results from the quarter ending Nov. 30.
The company reported adjusted earnings per share of $1.28, which was 2 cents per share above expectations of most Wall Street analysts. Gross revenue grew 7.9 percent to $30.74 per share.
Phasing out
McDonald’s will stop using plastic foam cups by the end of this year, the Chicago Tribune reported this week.
The fast food giant pans to use “100 percent fiber-based packaging” by 2020.
“We also plan to eliminate foam packaging from our global system by the end of 2018,” the company states on its website.
Issuing notes
Arby’s Restaurant Group Inc., parent company of the fast food chain, this week announced that a newly formed, direct parent entity, IRB Holding Corp., intends to offer $485 million of its senior notes due 2026.
Arby’s intends to use the net proceeds along with the proceeds from certain other financing transactions and cash on hand, to finance its pending acquisition of Buffalo Wild Wings, Inc.
Proceeds will also be used to refinance certain existing indebtedness of Buffalo Wild Wings and pay fees and expenses related to the foregoing transactions, the company said in a press release.
Once the acquisition is complete, Buffalo Wild Wings will be a privately held sister company of Arby’s and will continue to operate as an independent brand.
Bonusing
Waste Management, which operates the Jay County Landfill, announced Wednesday that it will join those companies giving employee bonuses as a result of the lower corporate tax rate.
The company will give $2,000 in special bonuses to about 34,000 employees.
Abatement sought
The developer of a 136-room Hampton Inn planned for downtown Fort Wayne near Parkview Field is seeking a tax abatement, The News-Sentinel reported this week.
White Lodging, Merrillville, is investing $17.8 million in the project and is seeking an abatement that would reduce its property taxes by $3.23 million over 10 years.
The new hotel will be adjacent to the company’s Courtyard by Marriott hotel on West Jefferson Boulevard and will feature a rooftop food and beverage venue with views of the baseball field.
On-Ramp
The Indiana Arts Commission has announced the launch of a program called On-Ramp aimed at assisting artists and other creative types in “energizing their business thinking.”
The On-Ramp accelerator involves a 3-day Creative Entrepreneur Course to be held May 12 to 20 in Madison, Indiana. Those who complete the course can apply for a fellowship that includes up to $2,000 in project funding.
Applications must be submitted online by March 1.
For more information, go to http://www.in.gov/arts/onramp.htm.
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