By Paul A. Harris
Portland, Ore., May 26 – Ardagh Packaging Finance plc and Ardagh Holdings USA Inc. priced an upsized $1 billion of notes mirroring their 5¼% senior notes due Aug. 15, 2027 (Caa1/B/B) at 96.25 in a Tuesday drive-by, according to market sources.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were Barclays and Wells Fargo Securities LLC.
The issue size increased from $600 million.
The issue price came at the rich end of price talk in the 96 area, which was also the initial price talk.
The mirror notes, which come with the same maturity and call features as the existing 5¼% senior notes due 2027, will not become fungible with those existing notes.
The Dublin, Ireland-based glass and metal packaging company plans to use the proceeds to repay debt. Ardagh has a consent and tender offer for its 6% senior notes due 2025 at 104.5. In the event that the consent and tender are unsuccessful Ardagh intends to use the proceeds to redeem its 4¼% senior secured notes due 2022 at the call price, or make open market purchases of its 6% senior notes due 2025, or for general corporate purposes.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amount: | $1 billion, increased from $600 million
|
| Maturity: | Aug. 15, 2027
|
| Securities: | Notes mirroring the 5¼% senior notes due Aug. 15, 2027 (non-fungible)
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Barclays and Wells Fargo Securities LLC
|
| Co-managers: | Rabo Securities and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 5¼%
|
| Price: | 96.25
|
| Yield: | 5.892%
|
| Spread: | 535 bps
|
| First call: | Aug. 15, 2022 at 102.625
|
| Equity clawback: | 40% at 105.25 until Aug. 15, 2022
|
| Trade date: | May 26
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 96 area
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