This website uses cookies, pixel tags, and similar technologies (“Cookies”) for the purpose of enabling site operations and for performance, personalisation, and marketing purposes. We use our own Cookies and some from third parties. Only essential Cookies are used by default. By clicking “Accept All” you consent to the use of non-essential Cookies (i.e., functional, analytics, and marketing Cookies) and the related processing of personal data. You can manage your consent preferences by clicking Manage Preferences. You may withdraw a consent at any time by using the link “Cookie Preferences” in the footer of our website.
Our Privacy Notice is accessible here. To learn more about the use of Cookies on our website, please view our Cookie Notice.
A group of bondholders who own Ardagh Groupunsecured notes and ARD Finance PIK notes has migrated to work with Akin Gump and held pitches for a financial advisor after one of the largest such holders Franklin Resources leaned in that direction, according to 9fin sources.
The crossholder group had initially been working with Milbank,which had corralled 40% of the unsecureds and one third of the PIKs at the Ardagh Finance entity, as reported, but Franklin and JPMorgan were among the largest holders still undecided, sources said.
After the metal and glass packaging conglomerate announced its bombshell priming deal to refinance its $700m 2025 SSNs with Apollo, the company’s already deeply distressed HoldCo PIK Toggle Notes maturing in 2027 fell even further to the low 20s, where they remain, according to 9fin data. The deal with Apollo allows it to buy $250m worth of PIKs and SUNs at a discount and exchange them into a term loan of that amount at a premium to their purchase.
The crossholder group comprises billions in 2027 maturities across various tranches, and doesn’t want the company to further address its $3.27bn in 2025 and 2026 maturities, while leaving $4bn equivalent in 2027 maturities, according to sources. The argument is that Ardagh’s owners should look at the 2027 PIKs as sitting in front of equity so they will need to address the debt structure holistically.
According to a source, holders are expecting potentially more maneuvers before the company engages with either the crossholder group or the senior lender group. The senior lender group organized with Gibson Dunn and Perella Weinberg, as reported by 9fin, after it was revealed that the company hired Kirkland & Ellis and Houlihan Lokey to help it explore liability management options.
Representatives of Franklin, Akin and Ardagh have not responded to requests for comment.
Source: 9fin, company filings
Enjoyed this article? Our customers receive news and analysis ahead of the crowd on the 9fin platform. To request a trial, click the button below.
