Ardagh Group S.A. Announces Comprehensive Recapitalization Transaction

Core Viewpoint - Ardagh Group has successfully reached a comprehensive recapitalization agreement with its major financial stakeholders, significantly reducing its debt and extending bond maturities to 2030 while injecting new capital into the business [1][2][3]. Recapitalization Transaction Highlights - The recapitalization transaction is expected to be completed by September 30, 2025, pending regulatory approvals and customary conditions [3]. - Upon completion, holders of senior unsecured notes (SUNs) will become majority shareholders, receiving 92.5% of the equity, while holders of the PIK notes will receive 7.5% [4]. - Senior secured notes (SSNs) holders will exchange their notes for new second lien paper maturing in December 2030, backed by a security package of all assets [4]. Financial Impact - The transaction will involve a debt-for-equity swap of SUNs and PIK notes, totaling $4.3 billion in obligations as of June 30, 2025, which will strengthen the balance sheet and reduce the debt burden [6]. - A provision of $1.5 billion in new capital will be introduced, maturing in December 2030, to refinance existing debt and fund corporate purposes [6]. - Existing bond maturities for Ardagh Glass Packaging will be extended by over four years to December 2030, enhancing liquidity [6]. Ownership and Stakeholder Involvement - Ownership of Ardagh Group will transfer to a syndicate of long-term investors, including major financial institutions and funds, who will also provide the new capital [6]. - The transaction support agreement (TSA) has been established with key stakeholders to facilitate the recapitalization process [8]. Financial Performance Outlook - The company projects Adjusted EBITDA from Glass Packaging to be approximately $660 million for FY25, increasing to $700 million in FY26 and $760 million in FY27, indicating a gradual improvement in global EBITDA margins [13]. - Capital expenditures are expected to be around $300 million in FY25, increasing to $400 million annually in FY26 and FY27 [13].