Ardagh to launch $666 million term loan B extension on Tuesday

By Sara Rosenberg

New York, Sept. 26 – Ardagh Group (Ardagh Holdings USA Inc. and Ardagh Packaging Finance SA) is scheduled to hold a call at 1 p.m. ET on Tuesday to launch an extension of it $666 million covenant-light term loan B by two years to Dec. 17, 2021, according to a market source.

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

Price talk on the extended term loan B is Libor plus 300 basis points with a 1% Libor floor, in line with current term loan B pricing, the source said.

The extended loan is offered at par, and has 101 soft call protection for one year and amortization of 1% per annum.

In addition, the company is looking to amend the term loan B to revise the restricted payments covenant to more closely align it to the terms of the 2016 bond indenture.

The amendment would also extend the time period for voluntary pre-payments in the excess cash flow sweep to 120 days after the year-end to allow the company to more accurately estimate the excess cash flow and voluntarily pre-pay non-extending lenders, the source added.

Existing lender commitments are due at 5 p.m. ET on Wednesday and new money commitments are due at 5 p.m. ET on Friday.

Closing is targeted for Oct. 7.

Ardagh Group is a Luxembourg-based producer of glass and metal products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.