On Monday, Luxembourg-based Ardagh Group - formerly the Irish Glass Bottle Company - announced that it has launched a bond offering for a total financing of US$2,850 million (€2.5 billion), through the issue of US$2,000 million Senior Secured Notes denominated in Euro and US dollars and US$850 million Senior Notes denominated in Euro and US dollars.

The proceeds from the issue and sale of the Notes will be used to pay part of the cash consideration (and associated fees and expenses) for the acquisition from Ball Corporation and Rexam PLC of certain metal beverage can manufacturing assets and support locations in Europe, the United States and Brazil, once Ball’s proposed offer for Rexam completes - the planned merger is set for June this year.

These new facilities are understood to comprise a total of 22 beverage can-making plants. The deal will make Ardagh the third largest maker of cans for beer and soft drinks worldwide and number two in Europe.

Ardagh Group is a global leader in glass and metal packaging solutions, producing packaging for most of the world's leading food, beverage and consumer care brands. After completion of this transaction, it will operate 110 facilities in 22 countries, employ approximately 23,000 people and have global sales exceeding US$8.8 billion.

Ardagh's Chairman, Paul Coulson, remarked "We are pleased to expand our consumer packaging business with the addition of a leading beverage can business. Whilst we do not currently operate in the beverage can market, the business we are acquiring is highly complementary to our existing metal and glass businesses. The acquired business has an excellent management team and strong customer relationships."

Citigroup acted as exclusive financial adviser to Ardagh and Shearman & Sterling LLP was lead legal adviser to Ardagh.

Management Transition

After ten very successful years as CEO of Ardagh, Niall Wall has informed the Board of his intention to step down in September. The Board also announced the appointment of Ian Curley as CEO designate of Ardagh. Ian was CFO of Smurfit Kappa Group plc from 2000 until March of this year. Ian will join Ardagh in late June and succeed Niall Wall when he steps down in September.