Ardagh bond sale raises $1bn as it moves to repay debt

Glass and metal container group originally sought to raise $600m

Paul Coulson, chairman of the Ardagh Group. Photograph: Alan Betson

Paul Coulson, chairman of the Ardagh Group. Photograph: Alan Betson

 

Glass and metal container group Ardagh has raised $1 billion (€911 million) in a bond sale. The company, which had been seeking to raise $600 million, is using the net proceeds to repay debt.

Led by Dubliner Paul Coulson, the New York-listed group priced the issue of $1 billion 5.250 per cent senior notes with a maturity of 2027 at $96.25. That represents a yield of 5.89 per cent.

The group will use the money to buy back a portion of its $1.7 billion 6 per cent senior notes due in 2025.

“Ardagh is delighted with the continued and broad-based investor support we have received in this upsized financing, which further improves our debt maturity profile,” Mr Coulson said.

Ardagh Group is a global supplier of recyclable, metal and glass packaging. It operates more than 50 metal and glass production facilities in 12 countries across three continents, employing more than 16,000 people with sales of $6.7 billion.

The company pulled its full-year financial forecasts last month amid economic uncertainty, even though demand for its products have generally remained strong to date.

However, the company said it had seen a “noticeable decline” in demand for glass bottles in its European business, which is more heavily exposed to cafes, hotels and restaurants than other units.