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Ardagh cuts spread on €130 million term loan to Euribor plus 325 bps
By Sara Rosenberg
New York, Dec. 9 - Ardagh Group reduced pricing on its €130 million six-year covenant-light senior secured term loan B (Ba3/B+) to Euribor plus 325 basis points from Euribor plus 350 bps, according to a market source.
The 1% floor, original issue discount of 99½ and 101 soft call protection for six months were unchanged.
The company is also getting a $500 million six-year covenant-light senior secured term loan B (Ba3/B+) that remained at Libor plus 325 bps with a 1% Libor floor, discount of 99½ and 101 soft call protection for six months.
Earlier in syndication, pricing on the U.S. term loan was reduced from talk of Libor plus 350 bps to 375 bps, and the discount on both tranches was tightened from 99.
The euro term loan was launched with talk that was 25 bps wide of the U.S. tranche.
Amortization on the debt is 1% per annum.
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.
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.
Allocations are expected to go out on Wednesday and closing is targeted for Dec. 17, the source added.
Ardagh is a Dublin-based supplier of glass and metal packaging.
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