Ardagh raises €1.12bn for deal

The Irish-owned glass and packaging group, Ardagh has announced the raising of $1.53bn (€1.12bn) in fresh debt financing to fund its stalled takeover of Verallia North America (VNA).

The two-tiered financing comprises a $700m term loan facility and the offering of $830m in senior notes, not due for repayment until 2019 and 2021. The term loan will mature in 2019.

Ardagh initially agreed the takeover of VNA, for $1.7bn from French multinational, Saint-Gobain, 12 months ago. However, the deal stalled last summer, with the US Federal Trade Commission claiming the acquisition was anti-competitive. Ardagh is currently negotiating a settlement with the commission, with it proposing the closure of nine various manufacturing facilities and another office.

In all, its proposals deal with the divestment of assets worth around $565m in combined revenues and over $100m in earnings.

In an additional trading update, Ardagh said that it expects to see “a slight decline” in total group revenues for 2013.

A slight revenue increase in its glass packaging division is expected, but a decline is likely in the metal packaging division.