Ardagh will raise a total of USD 1,000,000,000 equivalent of debt financing through an offering by Ardagh Finance Holdings, the net proceedings of which will be used to fund the redemption of the existing 11.125% Secured PIK Notes due 2018.
Ardagh Group announces that it intends to raise a total of USD 1,000,000,000 equivalent of debt financing through an offering by Ardagh Finance Holdings S.A. of Senior PIK Notes due 2019.
The net proceeds from this offering, estimated at EUR 716 million, will be used to fund the redemption of the existing 11.125% Secured PIK Notes due 2018 at an accreted value of EUR 643 million, including the optional redemption premium, and to finance a EUR 73 million return of capital to shareholders.
On a pro forma basis, after giving effect to the completed acquisition of Verallia North America (VNA) and the proposed divestment of six Anchor Glass plants, Ardagh Group had revenue and EBITDA of EUR 4,806 million and EUR 748 million, respectively, for the last 12 months ended 31 March 2014. The group also estimates that, following the completion of the VNA acquisition, it will achieve operational and administrative cost synergies of approximately USD 60 million (or EUR 45 million) over the next three years, with most of this being achieved within two years of closing, as well as an additional increase of EBITDA in the first year after the VNA acquisition due to accounting policy alignments of approximately USD 15 million (or EUR 11 million).
Ardagh Group is a global leader in packaging solutions, producing metal and glass packaging for most of the world’s leading food, beverage and consumer care brands. After giving effect to the proposed divestment above, Ardagh operates 94 production facilities in 23 countries and employs approximately 19,500 people.