Berry Plastics sees FY17 adjusted free cash flow $550M
"Looking forward to next year we will continue our focus on reducing our net debt to adjusted EBITDA ratio by 0.5 or greater to below 4 on or before the end of fiscal 2017. Additionally we are anticipating and excited for the close of our acquisition of AEP and believe together with our Engineered Materials Division, will create an impressive packaging film producer serving the North American market," stated the company. "We anticipate our fiscal year 2017 adjusted free cash flow to be $550 million, after deducting the $60 million payment made in October 2016 under the Company's tax receivable agreement. These estimates assume, solely for projection purposes, that the acquisition of AEP is completed on February 1, 2017. These estimates also assume flat working capital, constant currency rates as of the end of September, and no significant change in short term interest rates. Additionally, our capital spending and cash interest costs are forecasted to be $315 million and $275 million, respectively, for fiscal 2017. Within our adjusted free cash flow guidance, we are also assuming other cash taxes of $80 million, primarily related to international jurisdictions, and other cash uses of $60 million related to items such as acquisition integration expenses and costs to achieve synergies."