Ardagh seeks to raise an additional $200m

Irish-led bottle and can maker Ardagh is seeking to borrow an extra $200 million (€183 million) to add to the $500 million (€458 million) that it recently announced it intended raising from a bond sale.

Ardagh, which makes food and drink containers for the likes of Budweiser beer and John West salmon, last week announced that it intended to raise $500 million through selling bonds that it would repay in 2025.

The company said on Tuesday that it would offer a further $200 million in bonds “representing an add-on” to the $500 million offer that it announced late last week.

New York-listed Ardagh said in a statement that it intended using the cash to repay an existing line of credit. The company is closing both offers on Wednesday April 8th.

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The extra $200 million it is borrowing will be at 5.25 per cent interest and be classed as senior secured debt repayable in 2025, the same terms at which Ardagh is offering the $500 million.

The manufacturer intends using the original $500 million to repay a $300 million (€275 million) term loan and for general purposes.

Earnings

Ardagh employs more than 16,000 people in 50 factories in 12 countries around the world making bottles and tins used mainly to package food and drink.

Irish businessman Paul Coulson is chairman and chief executive of the group, which has its roots in the Ardagh glass manufacturing company that was once listed on the Dublin market.

Ardagh said last week that it expected earnings for the first quarter of 2020 to be in line with its forecast $270 million (€248 million), with “no material impact from the recent outbreak of Covid-19” during the three-month period.

The company added that its focus on selling to food and drink processors had helped ensure that demand for its products remained “resilient”. However, the business warned that ongoing restrictions meant to contain coronavirus could hit it in various ways.

Ardagh explained that the resulting economic slow-down could affect demand for its products while restrictions could disrupt its operations.