Ardagh to price $600 million 5¼% non-fungible mirror notes due 2027 in Tuesday drive-by

By Paul A. Harris

Portland, Ore., May 26 – Ardagh Packaging Finance plc and Ardagh Holdings USA Inc. plan to sell $600 million of 5¼% senior mirror notes due Aug. 15, 2027 (expected ratings Caa1/B/B) in a Tuesday drive-by, according to market sources.

The mirror notes, which come with the same maturity and call features as the existing 5¼% senior notes due 2027, will not become fungible with those existing notes.

Initial price talk has the mirror notes coming at a reoffer price in the 96 area to yield around 6%, according to a bond trader.

Citigroup Global Markets Inc. is the lead bookrunner. Barclays and Wells Fargo Securities LLC are the joint bookrunners.

Rabo Securities and SunTrust Robinson Humphrey Inc. are the co-managers.

As with the existing notes, the Rule 144A and Regulation S for life mirror notes first become callable on Aug. 15 2022 at 102.625.

The Dublin, Ireland-based glass and metal packaging company plans to use the proceeds to repay debt. Ardagh has a consent and tender offer for its 6% senior notes due 2025 at 104.5. In the event that the consent and tender are unsuccessful Ardagh intends to use the proceeds to redeem its 4¼% senior secured notes due 2022 at the call price, or make open market purchases of its 6% senior notes due 2025, or for general corporate purposes.

© 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.