Ardagh Group plans to pay down $150 million of ABL facility

By Wendy Van Sickle

Columbus, Ohio, July 15 – Ardagh Group SA plans to use $150 million of $2.5 billion of expected proceeds from a planned business combination to repay outstanding drawings and permanently reduce commitments under its asset-backed loan facility, according to a press release.

The company announced an agreement on Monday to combine its food and specialty metal packaging business with the business of Exal Corp. to form a metal packaging business to be called Trivium Packaging.

The combination is expected to be consummated in the fourth quarter of 2019.

Ardagh also plans to use the proceeds to call its 4 5/8% and 4 1/8% senior notes, both due 2023, for a combined $1.55 billion and to undertake an excess proceeds offer for its 4¼% senior notes due 2022 and its 2¾% senior notes due 2024 at par on a pro rata basis.

Any remaining proceeds would be used to call Ardagh’s 6¾% senior notes due 2024.

Ardagh is a metal and glass packaging company based in Luxembourg. Exal is an aluminum-container producer that is currently controlled by Ontario Teachers’ Pension Plan Board. Upon completion of the combination, Ardagh will hold a 43% stake in Trivium and 53% will be controlled by Ontario Teachers’ Pension Plan Board. Trivium’s headquarters will be in the Netherlands.

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