Ardagh might call three notes, make excess-proceeds offer for two more

By Wendy Van Sickle

Columbus, Ohio, July 15 – Ardagh Group SA plans to call its 4 5/8% and 4 1/8% senior notes, both due 2023, and is also eying an excess-proceeds offer for two additional series and a possible call of another, according to a press release.

The company is planning the transactions in conjunction with an agreement it announced Monday to combine its food and specialty metal packaging business with the business of Exal Corp. to form a metal packaging business to be called Trivium Packaging.

The combination is expected to be consummated in the fourth quarter of 2019.

Ardagh said it plans to use the $2.5 billion in cash proceeds to fund the note transactions. The total consideration to redeem the pair of 2023 notes would be about $1.55 billion.

Additionally, the company would undertake an excess proceeds offer for its 4¼% senior notes due 2022 and its 2¾% senior notes due 2024 at par on a pro rata basis.

The company plans to also use $150 million of proceeds to repay outstanding drawings and permanently reduce commitments under its asset-backed loan facility. Any remaining proceeds would be used to call Ardagh’s 6¾% senior notes due 2024.

Ardagh is a metal and glass packaging company based in Luxembourg. Exal is an aluminum-container producer that is currently controlled by Ontario Teachers’ Pension Plan Board. Upon completion of the combination, Ardagh will hold a 43% stake in Trivium and 53% will be controlled by Ontario Teachers’ Pension Plan Board. Trivium’s headquarters will be in the Netherlands.

© 2015 Prospect News.
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