Ardagh to sell $350 million five-year secured PIK notes on Thursday

By Paul A. Harris

Portland, Ore., Jan. 10 – Ardagh Group SA is expected to price a $350 million issue of five-year senior secured PIK notes on Thursday, according to market sources.

The deal was scheduled to be marketed by means of a late-morning investor conference call on Wednesday.

Initial guidance is 9½% to 10%, a trader said.

Credit ratings remain to be determined.

Citigroup Global Markets Inc. is the left bookrunner. Credit Suisse Securities (USA) LLC is the joint bookrunner.

The Rule 144A and Regulation S for life notes become callable on Sept. 15, 2019, co-terminus with the existing ARD Finance SA toggle notes. The first call premium for the new PIK notes due 2023 will be par plus 50% of the coupon.

The issuing entity will be special purpose vehicle ARD Securities Finance Sarl.

The Luxembourg-based packaging group plans to use the proceeds to provide liquidity to the shareholders of ARD Holdings SA, the ultimate principal shareholder of Ardagh Group.

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