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Ardagh glass to offer EUR 300m of corporate bonds to cover debt


Source: Materials Recycling Week

Irish glass bottle manufacturer Ardagh glass is to offer a €300 million (£255 million) corporate bond to institutional investors.

The company is to refinance €150 million of existing debt and use the remainder for general corporate purposes.

Issued by Ardagh Glass Finance Plc, the company is rated as a stable B2 by credit rating agency Moody’s with the seven-year debt rated Ba3.

In its credit opinion report, Moody’s said: “The stable rating outlook incorporates our expectation that Ardagh can manage to operate on largely stable profitability patterns, prior to restructuring expenses, over the course of 2009 with the ability to appropriately manage its cost base through the year.

“The stable outlook also incorporates our expectation that Ardagh will smoothly conduct its restructuring programme, resulting in improving credit metrics beyond 2009, while we would expect positive free cash flow generation already in 2009.”

Although Moody’s is concerned by current and recent volatile raw material prices, costs from restructuring the company and a generally bleak economic environment, the ratings agency expects a gradual recovery in time from the company.

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