Ardagh talks $1 billion minimum secured toggle notes due 2027 at 6¾% area yield; pricing Wednesday

By Paul A. Harris

Portland, Ore., Nov. 5 – Ardagh set price talk for a $1 billion minimum amount of ARD Finance SA senior secured toggle notes due June 30, 2027 (expected ratings Caa2/B-) in the 6¾% area, according to a syndicate source.

Official talk comes inside of initial guidance in the 7% area.

The tranche size and talk on a euro-denominated tranche of the notes is due early Wednesday morning.

Both tranches of the $2,215,000,000 equivalent two-part Rule 144A and Regulation S for life deal are set to price later on Wednesday.

Citigroup is the lead bookrunner for both tranches of notes. BofA Securities Inc. and J.P. Morgan Securities LLC are joint bookrunners for the dollar-denominated notes. Deutsche Bank and Goldman Sachs are joint bookrunners for the euro-denominated notes.

All of the notes become callable after three years at par plus 50% of the respective coupons.

The Dublin-based glass and metal packaging company plans to use the proceeds to refinance the senior secured toggle notes due September 2023 and senior secured PIK notes due January 2023 at ARD Finance and ARD Securities Finance Sarl, respectively.

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