Ardagh sets talk for €1.16 billion, $870 million notes; pricing Friday

By Paul A. Harris

Portland, Ore., June 20 – Ardagh Packaging Finance plc and Ardagh Holdings USA Inc., subsidiaries of Ardagh Group, set price talk for its three-part notes offering totaling €1,155,000,000 and $870 million, according to an informed source.

A $430 million tranche of senior secured floating-rate notes due June 30, 2019 (existing ratings Ba3/B+), which are callable after two years at 102, are talked with a Libor spread of 300 basis points at 99.75 to par.

A €1,155,000,000 tranche of senior secured fixed-rate notes due Jan. 15, 2022 (existing ratings Ba3/B+), which are non-callable for three years, are talked to yield in the 4 3/8% area.

A $440 million offering of senior fixed-rate notes due June 30, 2021 (existing ratings Caa1/CCC+), which are non-callable for three years, is talked to yield 6% to 6¼%.

The notes in all three tranches are scheduled to price Friday.

Joint bookrunner Citigroup Global Markets will bill and deliver for the Rule 144A and Regulation S offering. Deutsche Bank Securities Inc. is also a joint bookrunner.

The notes in all three tranches feature 35% equity clawbacks at par plus the coupon and 101% poison puts.

The Dublin, Ireland-based glass and metal container manufacturer plans to use the proceeds to fund a tender for its dollar-denominated and euro-denominated 7 3/8% senior secured notes due 2017 and its euro-denominated 7 1/8% senior notes due 2017.

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