Ardagh solicits consents for 5% notes, 4 7/8% notes, 7% notes

By Jennifer Chiou

New York, Oct. 10 - Ardagh Packaging Financing plc and Ardagh MP Holdings USA Inc. announced the start of a consent solicitation for their €250 million of 5% first-priority senior secured notes due 2022, $420 million of 4 7/8% first-priority senior secured notes due 2022 and $850 million of 7% senior notes due 2020.

The companies are soliciting consents to modify the note indentures relating to a special mandatory redemption.

According to a news release, if the acquisition of Saint-Gobain Containers, Inc. and its subsidiary is not completed on or prior to Jan. 13, the companies will be required to redeem $700 million of the notes on a pro-rata basis at 101 plus accrued interest.

Ardagh is looking for consent to extend that deadline to July 13, 2014 from Jan. 13. Consents are needed from holders of a majority of each series of notes.

The solicitation will end at 5 p.m. ET on Oct. 18.

For each $1,000 or €1,000 principal amount, participating holders will receive a consent fee of $2.50 or €2.50.

If the issuers get consent to extend the deadline and they elect to do so, they will also pay an extension fee of $2.50 or €2.50 per $1,000 or €1,000 principal amount to holders who delivered consents.

Citigroup Global Markets Ltd. is the solicitation agent (44 20 7986 8969, 212 723-6106, 800 558-3745 or liabilitymanagement.europe@citi.com). Global Bondholder Services Corp. is the information and tabulation agent (212 430-3774 or 866 387-1500).

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

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