By Paul A. Harris
Portland, Ore., June 2 – Ardagh Group launched and priced a restructured £400 million issue of 10-year senior notes at par to yield 4¾% on Friday, according to a market source.
The tenor of the notes was increased to 10 years from eight years.
Call protection was increased to five years from three years.
Prior to the restructuring that lengthened the maturity to 10 years the notes were talked in the 4¾% area, the source said.
“We are very pleased with the continued support we have received from a broad investor base in our first sterling bond issue,” Ardagh Group chairman Paul Coulson stated in a company press release.
“We have issued 10-year unsecured financing on favorable terms which provide us with attractive sterling hedging. We have also increased the strength and flexibility of our capital structure and further reduced risk from future market volatility. We have also reduced our exposure to potential U.S. dollar interest rate rises.”
Citigroup was the lead in a syndicate of banks that also included Barclays and Credit Suisse.
The Luxembourg-based glass and metal packaging company plans to use the proceeds to pay off its $500 million of senior secured floating-rate notes due 2021.
| Issuer: | Ardagh Group
|
| Amount: | £400 million
|
| Tenor: | 10 years, increased from eight years
|
| Securities: | Senior notes
|
| Managers: | Citigroup (bill and deliver), Barclays, Credit Suisse
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Call protection: | Five years, increased from three years
|
| Trade date: | June 2
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
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