Moody's rates Ardagh Glass notes B3

Moody's Investors Service said it assigned a provisional B3 (LGD5, 76%) rating to Ardagh Glass Finance plc's €310 million senior notes due 2017 to be issued in two tranches: one of senior notes and one of senior toggle notes.

Ardagh Glass Group plc's B2 corporate family rating and Caa1 €126.25 million senior PIK notes due 2015 and Ardagh Glass Finance BV's B3 €175 million senior notes due 2013 remain unchanged.

The outlook is stable.

Proceeds from the new notes will be placed in an escrow account until the completion of the company's acquisition of Rexam's (Baa3/stable) European glass activities.

The agency said the notes will be guaranteed on a senior basis by Ardagh Glass Holdings Ltd. and on a senior subordinated basis by the majority of its wholly owned subsidiaries and that the senior toggle notes allow Ardagh - after paying the first interest installment in cash - to meet the following interest payments until 2012 in either cash or accrual to principal or a combination of both.

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