By Paul A. Harris
Portland, Ore., Jan. 16 - Ardagh Packaging Finance plc and Ardagh Holdings USA Inc. priced an upsized $1.6 billion equivalent amount of high-yield notes in three tranches on Wednesday, according to an informed source.
Citigroup was the bookrunner for the deal, which was upsized from $1.45 billion equivalent.
The deal included $750 million equivalent of senior secured notes due Nov. 15, 2022 (Ba3/B+/) in dollar- and euro-denominated tranches.
A $420 million tranche priced at par to yield 4 7/8%, on top of yield talk that was revised lower from previous talk of 5% to 5¼%.
In the euro-denominated secured notes tranche, the company priced €250 million of the notes at par to yield 5%, on top of revised price talk. Earlier talk had the euro-denominated secured notes coming 25 basis points behind the dollar-denominated notes.
Ardagh also priced an upsized $850 million tranche of senior unsecured notes due Nov. 15, 2020 (B3/CCC+) at par to yield 7%, on top of price talk that was revised from earlier talk of 7% to 7¼%.
The unsecured tranche was upsized from $700 million. A proposed euro-denominated tranche of unsecured notes was withdrawn.
Proceeds will be used to finance the acquisition of the Verallia North America glass container manufacturing operations from Cie. de Saint-Gobain SA. The additional $150 million of proceeds resulting from the upsizing will be used for general corporate purposes.
Ardagh is a Dublin, Ireland-based supplier of glass and metal packaging.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amount: | $1.6 billion equivalent, increased from $1.45 billion equivalent
|
| Bookrunner: | Citigroup
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 24
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | $750 million equivalent
|
| Maturity: | Nov. 15, 2022
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
|
|
| Dollar-denominated secured notes
|
| Amount: | $420 million
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 305 bps
|
| First call: | Nov. 15, 2017 at 102.438
|
| Equity clawback: | 35% at 104.875 until Oct. 15, 2013
|
| Price talk: | 4 7/8% area, revised from 5% to 5¼%
|
|
|
| Euro-denominated secured notes
|
| Amount: | €250 million
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 344 bps
|
| First call: | Nov. 15, 2017 at 102.5
|
| Equity clawback: | 35% at 105 until Oct. 15, 2013
|
| Price talk: | 5%, revised from previous talk, which had the euro-denominated secured notes coming 25 bps behind the dollar-denominated notes
|
|
|
| Senior unsecured notes
|
| Amount: | $850 million, increased from $700 million
|
| Maturity: | Nov. 15, 2020
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 578 bps
|
| First call: | Nov. 15, 2016 at 103.5
|
| Equity clawback: | 35% at 107 until Nov. 15, 2015
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | 7%, revised from 7% to 7¼%
|
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