Ardagh expects to price $1.57 billion equivalent secured toggle notes on Wednesday

By Paul A. Harris

Portland, Ore., Sept. 6 – ARD Finance SA, a direct subsidiary of Ardagh Group SA, expects to price $1,565,000,000 equivalent of seven-year senior secured toggle notes on Wednesday, according to an informed source.

The deal is coming in tranches of dollar-denominated and euro-denominated notes, with the tranche sizes remaining to be determined.

A U.S. investor conference call is scheduled at 1 p.m. ET on Tuesday. European conference calls were scheduled to take place earlier Tuesday.

Citigroup is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. Barclays is the joint bookrunner.

The coupon must be paid in cash so long as there is sufficient restricted payment capacity at Ardagh Packaging Holdings Ltd.

The first coupon is declared payable in cash.

The notes come with three years of call protection.

There is a mandatory redemption provision stipulating that proceeds from the sale of secondary shares are required to be used to redeem 35% of the notes at 104 during the first three years, and the remaining notes thereafter at the call prices.

Credit ratings remain to be determined; however, the existing PIK notes are rated Caa2 by Moody's Investors Service and CCC+ by S&P.

Proceeds from the sale will be used to redeem the existing PIK notes due 2019 and to provide shareholder liquidity.

Ardagh Group is a producer of glass and metal products and is registered in Luxembourg.

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