Ardagh Group launches $700 million term loan B at Libor plus 300 bps

By Sara Rosenberg

New York, Jan. 27 - Ardagh Group held its conference call at 10:30 a.m. ET on Monday, launching a $700 million covenant-light term loan B due Dec. 17, 2019 with price talk of Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, the source said.

Amortization is 1% per annum.

The loan has an incremental allowance subject to compliance with the debt covenant and the liens covenant and 50 bps MFN for life.

Mandatory prepayments are 50% of excess cash flow with senior secured leverage based step-downs, subject to carve-outs, 100% of asset sale proceeds, subject to carve-outs and reinvestment rights, and 100% of net proceeds of debt not permitted to be incurred by the credit agreement.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Allocations are targeted to go out on Thursday.

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

Proceeds will be used to help finance the acquisition of Verallia North America, a glass packaging company.

Other funds for the transaction will come from $830 million of notes.

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

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