By Paul A. Harris
Portland, Ore., Jan. 29 - Ardagh Packaging Finance plc and Ardagh Holdings USA Inc. priced $830 million of senior notes (Caa1/CCC+/) on Wednesday in two tranches, both of which came at the tight end of yield talk, according to an informed source.
The deal included a $415 million tranche of five-year notes that priced at par to yield 6¼%, at the tight end of the 6¼% to 6½% yield talk.
In addition the Dublin-based company priced a $415 million tranche of seven-year notes at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
Citigroup Global Markets Inc. was the bookrunner.
Proceeds will be used to finance the acquisition of the Verallia North America glass container manufacturing operations from Cie. de Saint-Gobain SA.
Earlier in the month Ardagh released escrowed proceeds to buy back about $1.5 billion equivalent of high-yield notes from investors, which came in a January 2013 deal also backing the Verallia North America acquisition.
The buyback was triggered by the passage of the closing date for the acquisition.
The closing of the acquisition was delayed due to an antitrust complaint related to the acquisition, which went before the U.S. Federal Trade Commission.
Ardagh is a supplier of glass and metal packaging.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amount: | $830 million
|
| Securities: | Senior notes
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $415 million
|
| Maturity: | Jan. 31, 2019
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 473 bps
|
| First call: | Jan. 31, 2016 at 103.125
|
| Equity clawback: | 35% at 106.25 until Jan. 31, 2016
|
| Price talk: | 6¼% to 6½%
|
|
|
| Seven-year notes
|
| Amount: | $415 million
|
| Maturity: | Jan. 31, 2021
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 459 bps
|
| First call: | Jan. 31, 2017 at 103.375
|
| Equity clawback: | 35% at 106.75 until Jan. 31, 2017
|
| Price talk: | 6¾% to 7%
|
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