Ardagh talks €350 million seven-year secured notes at 2¼% area; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 30 – Ardagh Group SA set price talk on its €350 million tranche of seven-year senior secured notes (Ba3/BB) in the 2¼% area, a market source said on Tuesday.

Talk on the euro tranche follows talk set on Monday for the transaction's two dollar-denominated tranches: $600 million of seven-year notes (Ba3/BB) were talked to yield 4% to 4¼%, while $800 million of eight-year senior unsecured notes (B3/B) were talked to yield 5¼% to 5½%.

The deal is set to price on Tuesday.

For the secured tranches, Citigroup Global Markets Inc. is the lead bookrunner. Barclays and BofA Securities Inc. are the joint bookrunners.

For the sole unsecured tranche, Citigroup is again the lead bookrunner. Barclays and Deutsche Bank Securities Inc. are the joint bookrunners.

Rabo Securities and SunTrust Robinson Humphrey Inc. are co-managers for all tranches.

The Rule 144A and Regulation S notes in all three tranches become callable after three years at par plus 50% of the respective coupons.

The secured notes come with a special call provision permitting the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The issuing entities will be Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.

The Luxembourg-based glass and metal packaging producer plans to use the proceeds to refinance debt and for general corporate purposes.

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