Ardagh Packaging to price $1 billion eight-year notes Thursday; whisper is low 6% area

By Paul A. Harris

Portland, Ore., Jan. 19 – Ardagh Packaging plans to price a $1 billion offering of eight-year senior notes (B3/CCC+) on Thursday trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the deal coming with a yield in the low 6% area.

Citigroup Global Markets Inc. is the left lead bookrunner for the Rule 144A and Regulation S offering. BofA Merrill Lynch and Deutsche Bank Securities Inc. are the joint bookrunners.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at a premium. They also feature a three-year 40% equity clawback and a 101% poison put.

The issuing entities will be Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.

The Luxembourg-based producer of glass and metal products plans to use the proceeds, along with cash from the balance sheet, to repay its dollar-denominated 6¼% senior notes due 2019 and partially repay its dollar-denominated floating-rate senior secured notes due 2019.

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