Ardagh Metal Packaging - comment

The €269m (2029 maturity) Apollo loan adds more senior debt ahead of the SUNs. The new loan repaid ABL drawings, but the ABL is still available. In the event of a restructuring at AMP, the SUN's recovery would be decreased, as the ABL would be drawn before a filing. However, we do not see restructuring as likely. We also do not see an increase in cash outflows to Ardagh Group as likely; the boards are independent, and loans or a significant increase in the dividend paid would be hard for AMP to justify. S&P and Fitch commented that the AMP SUNs could fall in price during the restructuring of Ardagh Group on concerns about access to capital markets. However, an Ardagh restructuring could lead to Apollo taking control of AMP through its charge on Ardagh Group’s 75% holding in AMP. That CoC would lead to a put for the SUNs. 

The Global ABL for the restricted and unrestricted group (AMP) are available separately (and have separate maturity dates). However, having zero drawings on the AMP line may help access the Ardagh Group line. In Q3 2024, the Ardagh Group had drawn $75m of the $314m available under this line, and we would expect the line to be drawn before announcing restructuring proposals.