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News May 17, 2016

Shearman & Sterling Advises Ardagh on its $4.5 Billion Notes Offering

Shearman & Sterling represented Ardagh Packaging Finance plc and Ardagh Holdings USA Inc., as co-issuers, both subsidiaries of Ardagh Packaging Holdings Limited (Ardagh), on their $4.5 billion notes offering.  

The offering included $500 million senior secured floating rate notes due 2021, €440 million 4.125% senior secured notes due 2023, $1,000 million 4.625% senior secured notes due 2023, €750 million 6.750% senior notes due 2024 and $1,650 million 7.250% senior notes due 2024 (together, the Notes). The Notes are guaranteed by Ardagh and will be guaranteed by certain of its wholly owned subsidiaries.  

A portion of the net proceeds from the offering will be used to finance the acquisition of certain assets and liabilities of Ball Corporation and Rexam PLC in Europe, Brazil and the United States (the Acquisition). The remaining portion of the net proceeds from the offering will be used to refinance existing indebtedness. Certain proceeds from the offering of the Notes will be held in escrow pending the satisfaction of certain conditions, including the completion of the Acquisition.  

Ardagh is a major global glass and metal packaging manufacturer. After the Acquisition, Ardagh will operate 110 glass and metal manufacturing facilities located in 22 countries across five continents. It supplies companies such as AB InBev, Akzo Nobel, Bacardi, Bonduelle, Coca-Cola, ConAgra Foods, Constellation Brands, Diageo, Heineken, The Kraft Heinz Company, Nestlé, Pernod Ricard, Procter & Gamble and Unilever.  

The Shearman & Sterling team of lawyers in the firm’s London, New York and Washington, DC offices was led by Capital Markets associates Jonathan Handyside, Joseph Hutchinson, Arthur Ravignon and Saif Alaqili; Finance partners Ronan Wicks and Peter Hayes and associates Shane Burke, Spencer Barrowes, Miles Muirhead and Addison Pierce; Tax partner Kristen Garry and associate Eric Grosshandler; and counsel Mehran Massih, who advised on environmental aspects.