Ardagh Group Completes $5.8 Billion Recapitalization and Renews Financial Structure

Ardagh Group S.A. and its subsidiaries have successfully completed a comprehensive recapitalization, transforming its debt and securing a sustainable long-term capital structure. The transaction involved more than 99% of the holders of its senior secured notes (SSNs) and senior notes (SUNs), as well as approximately 80% of the holders of PIK Notes.

Senior Secured Notes (SSNs): These are first-ranking secured bonds. “Senior” means that they have priority over other debts. Senior Notes (SUNs): These are senior bonds not necessarily secured. They also have priority over subordinated debts, but are not always backed by specific assets. And PÌK are “Payment-in-Kind” bonds. Instead of paying interest in cash, the company can pay with more bonds or shares. They are usually riskier and tend to offer higher interest to compensate for that lack of immediate liquidity.

With this recapitalization, Ardagh will significantly reduce its debt: A debt-for-equity swap of approximately $4.3 billion was carried out, alleviating the financial burden and strengthening the balance sheet.

A new capital issuance will also be achieved: $1.5 billion in first lien senior secured notes at 9.5%, due in 2030, were issued to refinance existing debt, finance related sale transactions, and for general corporate purposes.

The measure contemplates: maturity extension: The SSNs were converted into second lien notes maturing in 2030, extending the terms of the nearest obligations by more than four years; Transfer of ownership: Ownership of Ardagh passes to the holders of SUNs and PIK Notes, mainly financial institutions and long-term investment funds; Credit line extension: The $0.5 billion global asset-based facility (ABL) is extended from 2027 to 2030, backed by a broad syndicate of lenders, and termination of litigation: Certain lawsuits in New York courts against Ardagh have been closed, eliminating previous legal uncertainties.

On the other hand, changes have been made in the management: Mark Porto joins as Executive Chairman of Ardagh Group and member of the Ardagh Metal Packaging board; Jean-Pierre Floris, with more than 40 years of experience in packaging and glass, joins as a director.

In addition, several director resignations have occurred, including Gavin Coulson and Paul Coulson, reorganizing the board to focus on the execution of the business plan.

Mark Porto has stated that he is happy to join Ardagh Group and work with our teams to generate significant value for all stakeholders.” Herman Troskie, outgoing chairman, noted for his part: “With the completion of this recapitalization and the extension of the ABL, we can fully focus on the future growth of the Ardagh Group.“