Amcor Limited

The notes were priced at 5.38 per cent for the seven year maturity, 5.69 per cent for the nine year maturity, and 5.95 per cent for the 12 year maturity, Amcor said in a statement.

Funding is targeted for December 15 and the allocation of notes to US investors has been completed.

No further offers of the notes will be made, the company said.

Amcor said it will use the proceeds to replace outstanding bank borrowings as well as for general corporate purposes.

Managing director and chief executive Ken MacKenzie said the move would diversify the sources of Amcor's debt and substantially lengthen the average tenure of its debt at historically attractive interest rates.

Amcor had net debt of $3.4 billion at June 30, 2009, and last month said it will reduce its gearing ratio from 46.2 per cent to 43.4 per cent from exchange rate impacts on the completion of its $2.44 billion acquisition of Rio Tinto's packaging unit.

Exchange rate impacts at the completion of the deal could lower the price paid for the transformational acquisition from 5.5 times earnings before interest, tax, depreciation and amortisation (EBITDA) to between 5.2 and 5.3 times, Mr MacKenzie told shareholders at Amcor's general meeting on October 22.

"The current sensitivity in reported earnings to movements in the exchange rate is $3 million in profit after tax for every one cent movement against the US dollar and $3 million in profit after tax for every one cent movement against the euro," he said at the time.

Amcor stands to become a global packaging giant with 85 per cent of its earnings from offshore after it secures Rio's Alcan Packaging food unit in Europe, global pharmaceuticals, Asia food unit and global tobacco unit.

Amcor's shares wre three cents higher at $5.64 at 1233 AEDT.

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"Volumes are generally lower than for the same time last year, however in most businesses, they appear to have stabilised at the current levels."

"At the full year results we stated that if economic conditions remained stable at current levels, earnings for the Australasian business were expected to be higher for the full year," he said.

"Given the solid start to the year, we remain confident of improved earnings."

Volumes are generally lower than for the same time last year, however in most businesses, they appear to have stabilised at the current levels, he said.

Amcor reported in August an 18.2 per cent fall in net profit to $A211.7 million (US$196.78 million) for the year to June 30 on lower underlying demand as customers reduced stocks across the supply chain.

Amcor also unveiled in August the $2.44 billion acquisition of Rio Tinto's packaging units, Alcan Packaging, which is expected boost Amcor's earnings by 40 per cent and means 85 per cent of earnings will come from offshore.

Mr MacKenzie told the annual general meeting on Thursday the deal was expected to be earnings per share accretive in the first full year of ownership, fiscal 2011.

Amcor said the full year impact on reported earnings due to the movement in the Australian dollar was uncertain.

"For the last nine months of the 2008/09 year the average exchange rate against the US dollar was approximately 70 cents and against the euro was approximately 53 cents."

"The current sensitivity in reported earnings to movements in the exchange rate is $3 million in profit after tax for every one cent movement against the US dollar and $3 million in profit after tax for every one cent movement against the euro.

"These sensitivities will increase following the completion of the Alcan Packaging acquisition."

The company said full year profit would depend on the exchange rate for these currencies over the next nine months as well as the exact timing of the closing of the Alcan Packaging acquisition.

At 1140 AEDT, Amcor shares were up nine cents or 1.6 per cent at $5.73.

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