Ardagh sets talk for $1.45 billion equivalent three-part offering

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Jan. 16 - Ardagh Packing Finance and Ardagh Holdings USA set talk for a proposed $1.45 billion equivalent three-part high-yield notes offering, a market source said.

Books close at 11 a.m. ET on Wednesday, and pricing is expected thereafter.

Price talk for the $750 million equivalent senior secured notes due Nov. 15, 2022 (existing ratings Ba3/B+) is set at 5% to 5¼%

The notes will be non-callable until Nov. 15, 2017.

The company is also planning up to €300 million of euro-denominated notes, with price talk coming 25 basis points behind the dollar-denominated notes.

Finally, price talk for the $700 million senior unsecured notes due Nov. 15, 2020 (existing ratings B3/CCC+) is set at 7% to 7¼%.

The notes will be non-callable before Nov. 15, 2016.

The proposed euro-denominated unsecured notes have been withdrawn.

Citigroup Global Markets Inc. is the bookrunner.

The three offerings are Rule 144A and Regulation S for life, with three-year 35% equity clawbacks and 101% poison puts.

Proceeds will be used to finance the acquisition of the Verallia North America glass container manufacturing operations from Cie. de Saint-Gobain SA.

Ardagh is a Dublin, Ireland-based supplier of glass and metal packaging.

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