Ardagh Metal Packaging - comment

Revenue was in line with our forecast, but EBITDA was ahead due to mix and additional absorption of costs. European volumes were +5%, assisted by a shift to metal cans from glass on cost grounds. AMPBEV still has $30m of under-absorption of costs to pass on to customers in 2025 and 2026. The company has signed a $300m (maturing 2029) secured loan with Apollo, which management said would be used to reduce drawings under the ABL; the interest cost was not disclosed, but we estimate it at around 8.00%, which is more in line with where the 29 SUNs trade). One stipulation of the loan is that the dividend and preference dividend do not grow whilst outstanding. Apollo is looking after the value of its security for the loan to Ardgah Glass. The equity was broadly flat on the day (but is +5% over the last week). The SUNs (where we have a position) were up 0.25 of a point.