By Paul A. Harris
Portland, Ore., Jan. 19 – Ardagh Packaging priced a $1 billion issue of eight-year senior notes (B3/CCC+) at par to yield 6% on Thursday, according to a syndicate source.
The yield printed on top of yield talk in the 6% area.
Initial guidance had the deal coming with a yield in the low 6% area, according to a bond trader.
Citigroup Global Markets Inc. was the left lead bookrunner. BofA Merrill Lynch and Deutsche Bank Securities Inc. were the joint bookrunners.
The Luxembourg-based producer of glass and metal products plans to use the proceeds, along with cash from the balance sheet, to repay its dollar-denominated 6¼% senior notes due 2019 and partially repay its dollar-denominated floating-rate senior secured notes due 2019.
| Issuers: | Ardagh Packaging Finance plc and Ardagh Holdings USA Inc.
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc. (bill and deliver), BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 372 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2020, then callable at 104.5
|
| Equity clawback: | 40% at 106 until Feb. 15, 2020
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody's: B3
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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