ARD Finance, which owns 92 percent of Ardagh Group, plans to raise roughly 2 billion EUR in a bond sale to refinance existing debt. It will use the proceeds from the debt sale to redeem 359 million EUR of payment-in-kind notes that carry an 8.75 percent interest rate, 845 million EUR of “senior toggle notes” and a further 692 million EUR of similar securities. The debt being refinanced was due to mature in 2023.
Leverage of Ardagh Group is unaffected by this financing, with its parent company debt maturities extended from 2023 to 2027 as a result of the planned transaction.
The group recently recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of 381 million EUR in the third quarter, rising 6 percent on the same period a year ago.
Ardagh’s European glass packaging business recorded a 1 percent decline in revenues to 372 million EUR, while their US division’s turnover rose to 394 million EUR.
Ardagh also recently completed a deal to merge its food and specialty business into a joint venture called Trivium. Ardagh received 2.2 billion EUR and a 43 percent stake in Trivium in the transaction.