The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksREX.L Share News (REX)

  • There is currently no data for REX

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 1-Ardagh draws US$20bn crowd for junk bond sale

Fri, 29th Apr 2016 16:18

(Updates throughout)

By Davide Scigliuzzo

NEW YORK, April 29 (IFR) - Investors on both sides of theAtlantic clamored for Ardagh's US$4.5bn bond sale this week,hoping that the packaging company's latest acquisition willfinally pave the way for an IPO.

Ardagh received around US$20bn in orders for its offering ofunsecured and secured bonds in US dollars and euros, two peoplefamiliar with the situation told IFR on Friday.

The five-part bond will help finance its US$3.42bnacquisition of metal can plants from Ball and Rexam, which hadto dispose of the assets ahead of their planned merger.

"These are high-quality assets," said one European investor."Ball and Rexam didn't cherry-pick assets they wanted [to get]rid of ... and the synergies have projected are veryconservative."

Investors long frustrated by Ardagh's unsuccessful attemptsto go public believe the company's latest push to increase thesize of its metal cans business could finally tilt the balance.

"In my mind this makes it more of a game-changer," saidDarren Hughes, co-head of high-yield investments at Invesco.

"Everyone is anticipating a future equity offering, and thatis going to be where the return is."

Strong inflows into high-yield funds - at a time when supplyis still sharply down from last year - also helped drive demandfor the trade, which saw pricing tighten across all tranches.

The unsecured portion quickly became a hit, allowing thecompany to launch a US$1.65bn eight-year non-call three at afinal yield of 7.25%, well inside initial whispers of around 8%.

In the secureds, a US$1bn seven-year non-call threefixed-rate was launched at 4.625%, tight to 5% area whispers,while a US$500m five-year floater was set to price at 325bp overLibor.

In the euro market, the company launched a EUR440m securedtranche at 4.125% and a EUR750m unsecured portion at 6.75%,tight to whispers of 4.5% and 7% respectively.

Ardagh will use any excess proceeds from the bond sale torepay some of its US dollar and euro-denominated bonds maturingin 2020.

Citi was sole bookrunner on the secured tranches andleft-lead on the unsecured bonds, with Barclays, Goldman Sachsand Deutsche Bank as joint bookrunners. (Reporting by Davide Scigliuzzo; Additional reporting by RobertSmith; Editing by Natalie Harrison and Marc Carnegie)

More News
15 Sep 2023 10:17

Trifast appoints former Essentra packaging chief Iain Percival as CEO

(Alliance News) - Trifast PLC on Friday said it has appointed former Essentra PLC packaging chief executive Iain Percival as its new chief executive officer.

Read more
29 Jun 2016 10:36

Rexam Says All Approvals For Takeover By Ball Now Secured (ALLISS)

Read more
28 Jun 2016 18:41

UPDATE 1-Ball wins conditional U.S. approval to buy Rexam

(Adds comment from Ball, background on the deal, divestiture) By Diane Bartz WASHINGTON, June 28 (Reuters) - Ball Corp and Rexam Plc, the world's two largest beverage can makers, have won U.S. antitrust approval to merge on condition that they sell eight aluminum can plants in the Uni

Read more
22 Jun 2016 11:05

DIRECTOR DEALINGS: Incoming Chemring Chairman Buys First Shares

Read more
21 Jun 2016 12:13

EU mergers and takeovers (June 21)

BRUSSELS, June 21 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- Private equity firms the Carlyle Group and Crestview Advisors to jointly acquire U.S. sports and entertainment event

Read more
15 Jun 2016 15:13

UK Shareholder Meetings Calendar - Next 7 Days

Read more
10 Jun 2016 15:08

UK Shareholder Meetings Calendar - Next 7 Days

Read more
23 May 2016 11:15

EU mergers and takeovers (May 23)

BRUSSELS, May 23 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- Investment fund Apollo Management to acquire Portuguese insurer Acoreana Seguros (approved May 20) NEW LISTINGS

Read more
20 May 2016 10:48

EU mergers and takeovers (May 20)

BRUSSELS, May 20 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process: APPROVALS AND WITHDRAWALS -- U.S. private equity firm Starwood Capital Group and Banco Sabadell to set up a joint venture to invest in hotels(appr

Read more
29 Apr 2016 15:00

Dividends Calendar - Week Ahead

Read more
29 Apr 2016 14:04

Books on Ardagh high-yield bond reach US$20bn: sources

By Davide Scigliuzzo NEW YORK, April 29 (IFR) - Investors have piled US$20bn of orders into Ardagh's US$4.5bn dual-currency high-yield bond offering, two sources familiar with the situation told IFR on Friday. The packaging company is raising funds in euros and US dollars from a five-

Read more
26 Apr 2016 15:43

Tuesday newspaper share tips: Vodafone, Rexam

(ShareCast News) - Vodafone´s upcoming full-year figures should dispel investors´ doubts about the sustainability of its dividend policy and the high rating accorded to its shares, The Daily Telegraph´s Questor team said. Some observers fret that the shares current price-to-earnings multiple of 40 t

Read more
25 Apr 2016 08:07

Ball and Rexam to sell assets to Ireland's Ardagh Group

(ShareCast News) - Ball Corp. and Rexam agreed to divest assets to Ireland's Ardagh Group worth $3.42bn in a bid to clinch regulatory approval for their merger. The two companies, which unveiled their intention to merge and create the world's largest manufacturer of food and beverage cans on 19 Febr

Read more
25 Apr 2016 05:32

Ball Agrees To Sell Assets To Secure Approval For Rexam Deal

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.