By Paul A. Harris
Portland, Ore., July 30 – Ardagh Group SA priced $1.79 billion equivalent of high-yield notes in three tranches on Tuesday, according to market sources.
The transaction saw about $100 million equivalent of proceeds shifted to the euro-denominated secured tranche from the dollar-denominated secured tranche.
An upsized €440 million amount of seven-year senior secured notes (Ba3/BB) priced at par to yield 2 1/8%. The tranche size increased from €350 million. The yield printed at the tight end of yield talk in the 2¼% area.
A downsized $500 million amount of seven-year senior secured notes (Ba3/BB) priced at par to yield 4 1/8%. The tranche size decreased from $600 million. The yield printed in the middle of the 4% to 4¼% yield talk.
The size of the sole unsecured tranche remained unchanged at $800 million. The senior unsecured notes (B3/B) priced at par to yield 5¼%. The yield printed at the tight end of the 5¼% to 5½% yield talk.
Citigroup Global Markets Inc. is the lead bookrunner for all three tranches. In addition, Barclays and BofA Securities Inc. were bookrunners for the secured notes and Barclays and Deutsche Bank Securities Inc. were bookrunners for the unsecured notes.
The issuing entities were Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
The Luxembourg-based glass and metal packaging producer plans to use the proceeds to refinance debt and for general corporate purposes.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Co-managers: | Rabo Securities and SunTrust Robinson Humphrey Inc.
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| Trade date: | July 30
|
| Settlement date: | Aug. 12
|
| Distribution: | Rule 144A and Regulation S
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| Marketing: | Roadshow
|
|
|
| Senior secured notes
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| Maturity: | Aug. 15, 2026
|
| Bookrunners: | Citigroup, Barclays and BofA Securities Inc.
|
| Special call: | 10% of issue callable annually at 103 during non-call period
|
|
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| Amount: | €440 million, increased from €350 million
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| Coupon: | 2 1/8%
|
| Price: | Par
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| Yield: | 2 1/8%
|
| Spread: | 275 bps
|
| First call: | Make-whole call at Bunds plus 50 bps until Aug. 15, 2022, then callable at 101.063
|
| Equity clawback: | 40% at 102.125 until Aug. 15, 2022
|
| Price talk: | 2¼% area
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|
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| Amount: | $500 million, decreased from $600 million
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| Coupon: | 4 1/8%
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| Price: | Par
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| Yield: | 4 1/8%
|
| Spread: | 220 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2022, then callable at 102.063
|
| Equity clawback: | 40% at 104.125 until Aug. 15, 2022
|
| Price talk: | 4% to 4¼%
|
|
|
| Senior unsecured notes
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| Amount: | $800 million
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| Maturity: | Aug. 15, 2027
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| Bookrunners: | Citigroup, Barclays and Deutsche Bank Securities Inc.
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| Coupon: | 5¼%
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| Price: | Par
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| Yield: | 5¼%
|
| Spread: | 327 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2022, then callable at 102.625
|
| Equity clawback: | 40% at 105.25 until Aug. 15, 2022
|
| Price talk: | 5¼% to 5½%
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