By Paul A. Harris
St. Louis, June 9 - Libbey Glass Inc. priced $406 million of notes in two tranches, a Rule 144A tranche and a Regulation D private tranche, according to market sources.
In a Rule 144A deal, the Toledo, Ohio, glass tableware manufacturer priced a $306 million tranche of six-month Libor plus 700 basis points five-year senior secured second-lien floating-rate notes (B2/B) at 98.00 for a 756 bps discount margin.
JP Morgan and Bear Stearns were bookrunners. BNY Securities was the co-manager.
Meanwhile in a Regulation D "private-private" transaction, the company also priced a non-rated $100 million issue of 51/2-year third-lien subordinated pay-in-kind notes with warrants for 3% of the company.
No other details were released on the Regulation D issue, according to a market source.
The issue was restructured from a single $400 million tranche of eight-year senior notes.
Proceeds, together with new senior secured credit facility, will be used to finance the purchase of a 51% equity interest - bringing Libbey's ownership to 100% - in its Mexican joint venture (Crisa) with Vitro SA de CV, repay Libbey's existing senior secured credit facility, redeem Libbey's outstanding senior notes, repay existing debt of Crisa and refinance the euro-denominated working capital line of credit of its wholly owned subsidiary Libbey Europe BV.
| Issuer: | Libbey Glass Inc.
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| Amount: | $406 million
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| Rule 144A tranche
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| Face amount: | $306 million
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| Maturity: | June 1, 2011
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| Security description: | Senior secured second-lien floating-rate notes
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| Bookrunners: | JP Morgan, Bear Stearns
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| Co-manager: | BNY Securities
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| Coupon: | Six-month Libor plus 700 bps
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| Price: | 98.00
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| Discount margin: | 756 bps
|
| Call features: | Callable after June 1, 2008 at 107.50, 102.50, par on and after June 1, 2010
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| Trade date: | June 9
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| Ratings: | Moody's: B2
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| Standard & Poor's: B
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| Distribution: | Rule 144A with registration rights
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| Regulation D tranche
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| Amount: | $100 million
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| Maturity: | 2011 (51/2-year term)
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| Security description: | Third-lien subordinated PIK notes with warrants for 3% of the company
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| Ratings: | Non-rated
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| Distribution: | Regulation D
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