By Paul A. Harris
Portland, Ore., Feb. 26 – Ardagh Metal Packaging Finance USA LLC and Ardagh Metal Packaging Finance plc priced their four-part offering of green bonds on Friday, according to market sources.
The deal came upsized by approximately $100 million equivalent to $2.75 billion equivalent.
The upsize, which increased the deal size from $2.65 billion equivalent, was concentrated in the two unsecured tranches.
The deal included:
• $600 million of 7.5-year senior secured notes (Ba2/BB/BB+) that priced at par to yield 3¼%, in the middle of price talk and initial guidance in the 3¼% area;
• €450 million of 7.5-year senior secured notes (Ba2/BB/BB+) that priced at par to yield at 2%, in the middle of price talk and initial guidance in the 2% area;
• $1.05 billion 8.5-year senior unsecured notes (B3/B+/BB-) that priced at par to yield 4%, upsized from $1 billion, and in the middle of price talk and initial guidance in the 4% area; and
• €500 million 8.5-year senior unsecured notes (B3/B+/BB-) that priced at par to yield 3%, upsized from $500 million equivalent, and in the middle of price talk and initial guidance in the 3% area.
Shortly before the close of books the deal was heard to be two-times oversubscribed at its original $2.65 billion equivalent size, according to a bond investor.
Lead bookrunner Citigroup is the green structuring adviser. Joint bookrunners were BofA and Deutsche Bank.
Upon satisfaction of the escrow provisions, $2.315 billion will be provided to Ardagh Group SA as cash consideration for the transfer of the Ardagh Metal Packaging business, with the balance, including the additional amount resulting from the upsizing of the deal, to be used for general corporate purposes.
The company intends to allocate an amount equal to the net proceeds to finance and/or refinance, in whole or in part, eligible green projects in accordance with the Ardagh Group Green Financing Framework.
Ardagh is a Dublin-based supplier of glass and metal containers.
| Issuers: | Ardagh Metal Packaging Finance USA LLC and Ardagh Metal Packaging Finance plc
|
| Transaction type: | Green eligible bonds
|
| Amount: | $1.65 billion and €950 million
|
| Lead bookrunner: | Citigroup (green structuring adviser)
|
| Joint bookrunners: | BofA and Deutsche Bank
|
| Co-managers: | BNP Paribas, Rabobank and Truist
|
| Trade date: | Feb. 26
|
| Settlement date: | March 12
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Secured notes
|
| Maturity: | Sept. 1, 2028
|
| Special call: | 10% of notes callable annually at 103 during non-call period
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Dollar tranche
|
| Amount: | $600 million
|
| Coupon: | 3¼%
|
| Price: | Par
|
| Yield: | 3¼%
|
| Spread: | 205 bps
|
| First call: | May 15, 2024 at 101.625
|
| Price talk: | 3¼% area
|
|
|
| Euro tranche
|
| Amount: | €450 million
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Spread: | 245 bps
|
| First call: | May 15, 2024 at 101
|
| Price talk: | 2% area
|
|
|
| Unsecured notes
|
| Maturity: | Sept. 1, 2029
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Fitch: BB-
|
|
|
| Dollar tranche
|
| Amount: | $1.05 billion, increased from $1 billion
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 280 bps
|
| First call: | May 15, 2024 at 102
|
| Price talk: | 4% area
|
|
|
| Euro tranche
|
| Amount: | €500 million, increased from $500 million equivalent
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Spread: | 338 bps
|
| First call: | May 15, 2024 at 101.5
|
| Price talk: | 3% area
|
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