Glass and metal containers giant Ardagh Group moved on Monday to shave millions of dollars off its annual interest bill by refinancing its most expensive bond.
The company said that it was planning to sell $1 billion of senior secured notes, denominated in dollars and euro, that will be due to mature in 2026, and a further $800 million of senior notes that fall due a year later.
The proceeds from the sales will be used to redeem all $1.65 billion of bonds that mature in 2024, accrued interest and a premium that it must pay to buy back the bonds early. These bonds carry an interest rate of 7.25 per cent, making them the most expensive to service across Ardagh’s $8.49 billion debt pile.
The decision to redeem the 2024 bonds early comes two weeks after the group said 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.
Ardagh will continue to own 43 per cent of the partnership, called Trivium, with the Ontario Teachers' Pension Plan holding the remainder.
