Ardagh Group trims pricing on $675 million equivalent term loan B

By Sara Rosenberg

New York, Dec. 6 - Ardagh Group reduced pricing on the U.S. portion of its $675 million equivalent six-year covenant-light senior secured term loan B (Ba3/B+) to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

The euro portion of the loan continues to be talked 25 bps wide of the U.S. tranche, which means that pricing has essentially been reduced to Euribor plus 350 bps from talk of Euribor plus 375 bps to 400 bps.

Also, the original issue discount on the U.S. and euro pieces was tightened to 99½ from 99, the source said.

Both tranches still have a 1% floor, 101 soft call protection for six months and amortization of 1% per annum.

The company is looking to do at least $500 million of the loan in U.S. dollars and the remainder in euros, but that is subject to change based on demand.

Mandatory prepayments are from 50% of excess cash flow with senior secured leverage-based step-downs, 100% of asset sale proceeds, subject to carve outs and reinvestment rights, and 100% of the net proceeds of debt issuances, subject to a threshold and exceptions.

There is an incremental allowance that is subject to compliance with a debt covenant and a liens covenant, and 50 bps MFN for life.

Commitments are due at 5 p.m. ET on Monday, accelerated from 5 p.m. ET on Tuesday, the source added.

Citigroup Global Markets Inc. is the lead bank on the deal.

Proceeds will be used to repay in full the 9¼% first-priority senior secured notes due 2016 issued by Ardagh Glass Finance plc and for general corporate purposes.

Closing is targeted for Dec. 17.

Ardagh is a Dublin-based supplier of glass and metal packaging.

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