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Ardagh Group Faces Seemingly Limited Options to Tackle Upcoming 2026/2027 Maturity Wall Totaling $4.8B After Utilizing Last Material Unencumbered Asset to Retire 2025 SSNs

Credit Research: Jeremy Sherby, CFA Relevant Document: Q2 2024 Financial Report   Key Takeaways   Following its April liability management exercise transaction, Ardagh Group now faces an even steeper maturity wall in 2026 and 2027 with approximately $4.8 billion due in aggregate, while lacking meaningful unencumbered assets following the Apollo transaction, which had allowed it to redeem its 2025 maturities;   The outlook for Ardagh’s glass business remains uncertain as the company cut its EBITDA guidance in its second-quarter earnings report for the second year in a row, and now guides for 2024 EBITDA to be near 2022 levels; and   The company’s existing cash flow would likely be overwhelmed with increased cash interest if it were to refinance its 2026 maturities at market yields, while any refinancing is likely to require the company to take into consideration how to resolve the looming 2027 maturities. When Ardagh Group SA released its second-quarter 2024 earnings last month, the company reported $205 million of adjusted EBITDA for the glass business, down 11.6% from $232 million in the prior-year period, and lowered its EBITDA guidance for the full year. This came as the company faces $2.5 billion in secured debt coming due in[...]