Ardagh sets talk for $2.22 billion equivalent two-part secured notes; pricing Wednesday

By Paul A. Harris

Portland, Ore., Nov. 6 – Ardagh set price talk for a euro-denominated tranche of ARD Finance SA senior secured toggle notes due June 30, 2027 (Caa2/expected B-) in the 5% area on Wednesday, according to market sources.

That news follows a Tuesday update with which a $1 billion minimum amount of those notes was talked in the 6¾% area, inside of initial guidance in the 7% area.

Final tranche sizes in the $2,215,000,000 equivalent two-part Rule 144A and Regulation S for life deal were pending at press time.

The notes in both tranches will be priced and allocated on Wednesday, sources say.

Citigroup is the lead bookrunner for both tranches of notes. BofA Securities Inc. and J.P. Morgan Securities LLC are joint bookrunners for the dollar-denominated notes. Deutsche Bank and Goldman Sachs are joint bookrunners for the euro-denominated notes.

All of the notes become callable after three years at par plus 50% of the respective coupons.

The Dublin-based glass and metal packaging company plans to use the proceeds to refinance the senior secured toggle notes due September 2023 and senior secured PIK notes due January 2023 at ARD Finance and ARD Securities Finance Sarl, respectively.

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