Tuesday, May 26, 2020
Home Latest Ardagh to save $170m a year from bond and assets deals

Ardagh to save $170m a year from bond and assets deals

Glass and metal containers giant raised $1.8bn through sale of bonds on market

Ardagh-bottling-plant
Ardagh bottling plant: group is spinning off its food cans business and refinancing its most expensive bond.

Glass and metal containers giant Ardagh Group is on track to save $170 million (€152 million) in annual interest payments through deals in recent weeks to spin off its food cans business and refinance its most expensive bond.

The group raised $1.8 billion through the sale of bonds on the market on Tuesday, with the new debt priced to carry a blended interest rate of 3.7 per cent. The proceeds are being used to redeem the group’s $1.65 billion of 2024 bonds, which have a 7.25 per cent rate, together with accrued interest and a premium the company must pay for buying back the debt early.

“Ardagh is very pleased with the strong support from the high-yield market in this latest financing, which results in annual interest savings of $45 million and extends our debt maturities to an average six years,” said group chairman and chief executive Paul Coulson.

Debt pile

Meanwhile, Ardagh, which currently has an $8.5 billion debt pile, said earlier this month that it plans to pay down borrowings by using $2.5 billion of cash it expects to receive in the fourth quarter through the sale of its food and speciality cans business into a joint venture.

This deal is expected to cut Ardagh’s interest bill by an additional $125 million annually.

Ardagh will continue to own 43 per cent of the partnership, called Trivium, with the OntarioTeachers’ Pension Plan holding the remainder. However, Trivium will be highly leveraged, having taken on $2.85 billion of debt in recent weeks.

RELATED NEWS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

1,206FansLike
414FollowersFollow
7SubscribersSubscribe

Most Popular

Sasu Koivumäki appointed acting CEO of Glaston

Glaston's President and CEO Arto Metsänen to retire from the company. Arto Metsänen (b....

Haselsteiner: Automatic tempering furnace bed loading and unloading system

Automatic tempering furnace bed loading and unloading system, the installation of the system may vary Haselsteiner GmbH has developed...

Is it worth bringing in more digitalization in glass lamination?

As digitalization becomes a strategic discipline in almost all enterprises and industries, the glass processing business is...

Glasspro India 2020 has been postponed due to Covid19 Corona Virus

In the awakening of global health situation due to COVID-19 and keeping the health safety directives in...

Recent Comments