Ardagh sets roadshow for $2.85 billion equivalent notes backing purchases of Ball and Rexam assets

By Paul A. Harris

Portland, Ore., April 25 – Ardagh Group plans to start a roadshow on Tuesday in London for a $2.85 billion equivalent four-part offering of notes, according to a syndicate source.

The deal includes $2 billion equivalent of seven-year senior secured notes, which become callable after three years at par plus 50% of the coupon, and $850 million equivalent of eight-year senior unsecured notes, callable after three years at par plus 75% the coupon.

Both the secured and unsecured notes are being offered in tranches of dollar-denominated and euro-denominated notes, with tranche sizes to be determined.

The roadshow continues in London on Wednesday, then moves to the East Coast of the United States on Thursday and Friday, and is set to conclude on the West Coast of the United States on May 2 and May 3.

The Rule 144A and Regulation S for life deal is expected to price on May 4.

Citigroup Global Markets is the bookrunner.

Barclays, Goldman Sachs and Deutsche Bank are the co-managers.

All of the notes feature 40% equity clawbacks and may be put by investors at 101 in the event of a change of control.

Proceeds will be used to help finance the acquisition of assets from Ball Corp. and Rexam plc. The acquisitions include certain metal beverage can manufacturing assets and support locations in Europe, the United States and Brazil, when Ball’s proposed acquisition of Rexam becomes complete.

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

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