By Paul A. Harris
Portland, Ore., May 28 – Ardagh Packaging Finance plc and Ardagh Holdings USA Inc. priced an upsized $715 million add-on to their 4 1/8% senior secured notes due Aug. 15, 2026 (B1/BB/BB+) at 100.5 on Thursday, according to a market source.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc. and Goldman Sachs & Co. LLC.
The notes come with a 3.995% yield to worst and a 4.03% yield to maturity.
The issue size increased from $400 million.
The issue priced at the rich end of the 100 to 100.5 price talk. Initial talk was 99.5 to 100.
The add-on came just two days after the same issuer priced $1 billion of notes mirroring the Ardagh Packaging Finance and Ardagh Holdings USA 5¼% senior notes due Aug. 15, 2027 (Caa1/B/B).
The Dublin, Ireland-based glass and metal packaging manufacturer plans to use the proceeds from Thursday’s add-on, including the incremental proceeds resulting from the $315 million upsize, to redeem its 4¼% senior secured notes due 2022.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amount: | $715 million, increased from $400 million
|
| Maturity: | Aug. 15, 2026
|
| Security description: | Add-on to 4 1/8% senior secured notes due Aug. 15, 2026
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 4 1/8%
|
| Price: | 100.5
|
| Yield to worst: | 3.995%
|
| Yield to maturity: | 4.03%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2022, then callable at 102.063
|
| Special call: | 10% of notes annually at 103 until Aug. 15, 2022
|
| Trade date: | May 28
|
| Settlement date: | June 4 with accrued interest
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 100 to 100.5
|
| Marketing: | Drive-by
|
| Original issue: | $500 million issue priced July 30, 2019
|
| Fungibility: | Add-on notes to become fungible with existing notes
|
| Total issue size: | $1.215 billion
|
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