Trivium sets talk in upsized $2.85 billion equivalent four-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., July 18 – Trivium Packaging Finance BV launched its upsized $2.85 billon equivalent four-part offering of high-yield notes late Thursday, with all tranches launching at the tight end or tighter than talk, according to an informed source.

The deal launched as follows:

• $700 million equivalent of euro-denominated seven-year senior secured fixed rate notes (B2) at 3¾%, 12.5 basis points tighter than talk in the 4% area;

• $400 million equivalent of euro-denominated seven-year senior secured floating-rate notes (B2) at Euribor plus 375 bps, at the tight end of the Euribor plus 375 bps to 400 bps talk;

• An upsized $1.05 billion amount of seven-year senior secured fixed-rate notes (B2) at 5½%, 25 bps below the tight end of the 5¾% to 6% talk, upsized from $900 million; and

• An upsized $700 million amount of eight-year senior unsecured fixed-rate notes (Caa2) at 8½%, 25 bps below the tight end of the 8¾% to 9% talk, upsized from $600 million.

The euro-denominated portion of the deal was downsized to $1.1 billion equivalent from $1.25 billion equivalent, with proceeds shifted to the dollar-denominated senior secured fixed-rate notes.

The unsecured tranche was upsized to $700 million from $600 million, resulting in the overall deal to upsize to $2.85 billion equivalent from $2.75 billion equivalent.

The secured and unsecured fixed-rate notes come with three years of call protection. The secured floating-rate notes come with one year of call protection.

Dollar-denominated books closed Thursday. Euro-denominated books close at 5:30 a.m. ET on Friday, and the deal is set to price thereafter.

Joint bookrunner Citigroup Global Markets Inc. will bill and deliver for the Rule 144A and Regulation S deal. BMO Capital Markets is also a joint bookrunner.

Proceeds will be used to form Trivium Packaging BV, a joint venture combination of Ardagh’s metal, food and specialty business, with Ontario Teachers' Pension Plan Board’s Exal Corp., via cash consideration to Ardagh Group. Proceeds will also be used refinance certain debt of Exal and for general corporate purposes. The additional proceeds resulting from the $100 million upsizing of the deal will be used to put cash onto the balance sheet.

Trivium Packaging is a diversified metal packaging business based in Luxembourg.

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