By Paul A. Harris
Portland, Ore., Nov. 6 – Ardagh priced two tranches of ARD Finance SA senior secured toggle notes due June 30, 2027 (Caa2/B-) on Wednesday, according to market sources.
The deal included $1.13 billion of notes that priced at par with a cash yield of 6½%, 12.5 basis points inside of yield talk in the 6¾% area; initial talk was in the 7% area. The cash coupon is 6½%. The PIK coupon steps up to 7¼%.
The Dublin-based glass and metal packaging company also priced €1 billion of the notes at par to yield 5%, in the middle of yield talk in the 5% area. The cash coupon is 5%. The PIK coupon steps up to 5¾%.
Citigroup was the lead bookrunner for both tranches. Joint bookrunners on the dollar tranche were BofA Securities Inc. and J.P. Morgan Securities LLC.
Ardagh 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.
| Issuer: | ARD Finance SA
|
| Maturity: | June 30, 2027
|
| Securities: | Senior secured toggle notes
|
| Lead bookrunner: | Citigroup
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody's: Caa2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated notes
|
| Amount: | $1.13 billion
|
| Cash coupon: | 6½%
|
| PIK coupon: | 7¼%
|
| Price: | Par
|
| Cash yield: | 6½%
|
| Spread: | 475 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2022, then callable at 103.25
|
| Price talk: | 6¾% area
|
| Joint bookrunners: | BofA Securities Inc. and J.P. Morgan Securities LLC
|
|
|
| Euro-denominated notes
|
| Amount: | €1 billion
|
| Cash coupon: | 5%
|
| PIK coupon: | 5¾%
|
| Price: | Par
|
| Cash yield: | 5%
|
| Spread: | 546 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2022, then callable at 102.5
|
| Price talk: | 5% area
|
| Joint bookrunners: | Deutsche Bank, Goldman Sachs
|
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