S&P rates Owens-Brockway notes B+

S&P said it assigned B+ issue-level and 5 recovery ratings to Owens-Brockway Glass Container Inc.'s (OBGC) planned senior unsecured notes due 2031, and BB- issue-level and 3 recovery ratings to OI European Group BV’s proposed notes due 2028.

The 5 recovery rating indicates modest (10%-30%; rounded estimate: 10%) recovery in default and the 3 rating indicates meaningful (50%-70%; rounded estimate: 55%) recovery.

The proceeds will be used to repay debt, specifically OBGC's $250 million of 5 7/8% notes due 2023 and OIEG's €725 million of 3 1/8% notes due 2024. O-I Glass Inc. will concurrently run a tender offer for those notes. All of S&P’s other ratings on O-I Glass, including the BB- issuer credit rating, are unchanged, the agency said.

The outlook is stable.

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