Ardagh Holdings USA Inc. and Ardagh Packaging Finance S.A., each a subsidiary of Ardagh Packaging Holdings Limited, announced the proposed syndication of $675,000,000 (USD/EUR) equivalent 6-year Senior Secured Term Loan B (the “Term Loan”).
The Term Loan will be guaranteed on a senior secured basis by Ardagh Packaging Holdings Limited and by certain of its wholly-owned subsidiaries.
The net proceeds from the Term Loan will be used (i) to repay in full the 9.250% First Priority Senior Secured Notes due 2016 issued by Ardagh Glass Finance plc (the “2016 Notes”), (ii) to pay related transaction costs, fees and expenses and (iii) for general corporate purposes. This press release is for information purposes only and is not an offer to purchase or a solicitation of an offer to purchase with respect to any of the 2016 Notes.
Disposal of Plants
Ardagh is in the process of selling four plants to help meet the concerns of the Federal Trade Commission (“FTC”) with regard to the beer and spirits sectors and to facilitate FTC approval of the purchase of Verallia North America (“VNA”). The four plants have revenues of approximately $450 million and EBITDA of approximately $50 million. Given the strategic value of reaching a timely settlement of the FTC complaint, Ardagh expects that the proceeds from this sale of these four plants will be at a substantially lower multiple of EBITDA than the purchase price multiple of the overall VNA transaction.
VNA Performance Update
VNA’s 2012 Revenues and EBITDA were $1.6 billion and $261 million. Ardagh expects VNA’s 2013 Revenues and EBITDA to be in line with 2012. Ardagh expects VNA’s 2013 capital expenditures to be approximately $110 million.