By Paul A. Harris
Portland, Ore., June 20 – Ardagh Packaging Finance plc and Ardagh Holdings USA Inc., subsidiaries of Ardagh Group, priced $1.55 billion and €1,155,000,000 of notes on Friday in a three-part transaction that saw the dollar portion of the deal grow from $870 million, according to an informed source.
The issuance included a massively upsized $1.11 billion tranche of senior secured floating-rate notes (Ba3/B+) that priced at par to yield Libor plus 300 basis points. The tranche was upsized from $430 million. The spread came on top of spread talk. The reoffer price came at the rich end of the 99.75 to par price talk.
In addition the company priced €1,155,000,000 of senior secured fixed-rate notes (Ba3/B+) at par to yield 4¼%. The yield printed at the tight end of yield talk in the 4 3/8% area.
The transaction also included a $440 million tranche of senior unsecured fixed-rate notes (Caa1/CCC+/), which priced at par to yield 6%, at the tight end of the 6% to 6¼% yield talk.
Joint bookrunner Citigroup Global Markets will bill and deliver. Deutsche Bank Securities Inc. is also a joint bookrunner.
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.
| Issuer: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amounts: | $1.55 billion (increased from $870 million) and €1,155,000,000
|
| Bookrunners: | Citigroup Global Markets (bill and deliver), Deutsche Bank Securities Inc.
|
| Trade date: | June 20
|
| Settlement date: | July 3
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Net roadshow
|
|
|
| Senior secured floating-rate notes
|
| Amount: | $1.11 billion, increased from $430 million
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | Three-month Libor plus 300 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 300 bps
|
| First call: | June 30, 2016 at 102
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | Libor plus 300 bps at 99.75 to par
|
|
|
| Senior secured fixed-rate notes
|
| Amount: | €1,155,000,000
|
| Maturity: | Jan. 15, 2022
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 337 bps
|
| First call: | June 30, 2017 at 102.125
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | 4 3/8% area
|
|
|
| Senior unsecured notes
|
| Amount: | $440 million
|
| Maturity: | June 30, 2021
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 378 bps
|
| First call: | June 30, 2017 at 103
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 6% to 6¼%
|
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