Global packaging company Ardagh Group has confirmed a comprehensive recapitalisation transaction with key financial stakeholders, including its controlling shareholder and creditors holding a majority of various debt notes.
The debt restructuring deal will result in certain creditors assuming full control of the company from Irish billionaire Paul Coulson.
The agreement will reduce the group’s $4.3bn debt through a debt-for-equity swap of SUNs and payment-in-kind (PIK) notes, and inject $1.5bn in new capital to refinance existing debt facilities, purchase Yeoman Capital, and cover general corporate purposes, fully backed by members of the SSN Group and SUN Group.
As part of the agreement, Yeoman Capital, the investment entity through which Coulson exercises control over Ardagh, will be compensated with a $300m payment to facilitate his exit from the company, reported Bloomberg.
The transaction also extends the maturities of existing Ardagh Glass Packaging bonds by over four years to December 2030, enhancing liquidity.
Ownership of Ardagh Group will transfer to a syndicate of long-term investors, comprising major financial institutions and funds committed to providing the new capital.
The Glass Packaging and Metal Packaging businesses will remain under common ownership of Ardagh Group.
Completion of the transaction is anticipated by 30 September 2025, subject to regulatory approvals and customary conditions.
Upon completion, assuming full participation, SUN holders will become the majority shareholders with 92.5% equity while PIK notes holders will receive 7.5% equity. SSN holders will exchange into new second lien paper, maturing in December 2030.
The recapitalisation will not impact the public listing or capital structure of Ardagh Metal Packaging, a subsidiary of Ardagh Group.
