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Ardagh in bid to raise $410m in US roadshow for acquisitions

Irish packaging manufacturer Ardagh is running a US roadshow to raise a total of $410m through two bond issues. It hopes to use the bulk of the proceeds to finance two acquisitions which are still being negotiated. BONDS

Citi and HSBC are handling the roadshow for Ardagh, which is controlled by Dublin businessman Paul Coulson.

A subsidiary company -- Ardagh Packaging Finance -- is seeking to raise $160m via notes due in 2017 and carrying a 7.375pc coupon, or interest rate. An additional $250m in notes that mature in 2020 are also being offered. They carry a 9.125pc coupon.

Ardagh did not give details of the two potential acquisitions it is currently in advanced negotiations over. Last month, Ardagh agreed to pay €85m to buy the Boxal group of companies that manufacture aluminium containers.

If it doesn't proceed with acquiring the two unnamed targets, Ardagh intends to use the newly raised funds for general corporate purposes and to reduce other outstanding debt.


The group also said yesterday that its revenues for the fourth quarter of 2011 are likely to have been broadly unchanged with the corresponding quarter in 2010.

Earnings before interest, tax, depreciation and amortisation are likely to have fallen by a high single-digit percentage, according to the company.

Last November, Ardagh Packaging reported a 183pc rise in revenue to €898m for the third quarter and a 133pc increase in operating earnings to €155m.

Excluding the impact of its 2010 acquisition of Impress, Ardagh Packaging's revenue climbed 3.2pc and operating earnings fell 6.4pc as input costs increased.

Ardagh also said it's working on a new trade-receivables programme that could provide up to a €150m credit line.

Irish Independent