O-I Glass offers green notes in $500 million, €500 million tranches

By Paul A. Harris

Portland, Ore., May 11 – O-I Glass, Inc. plans to price dollar-denominated and euro-denominated senior green notes via two separate – and separately rated – indirect wholly owned subsidiaries in quick-to-market Thursday transactions, according to market sources.

Owens-Brockway Glass Container Inc. (OBGC) is offering $500 million of eight-year notes (B2/B+), callable after three years at par plus 50% of the coupon.

Initial talk is in the mid-to-high 7% area.

Wells Fargo Securities LLC is the left lead for the dollar-denominated notes.

OI European Group BV (OIEG) is offering €500 million of five-year notes (Ba3/BB-), callable after two years at par plus 50% of the coupon.

Initial talk is in the high-6% area.

JPMorgan is the left lead for the euro-denominated notes.

Managing both tranches of the Rule 144A and Regulation S for life offering will be global coordinators and joint bookrunners Wells Fargo, JPMorgan and Credit Agricole.

BNP Paribas, BofA, Deutsche Bank, Goldman Sachs, Mizuho, Rabobank are Scotiabank also joint bookrunners for both tranches.

The deal was shopped on a global investor conference call that took place Thursday morning, New York time, following which virtual meetings are being made available.

Proceeds plus cash on hand will be used to fund tender offers for $250 million of outstanding OBGC 5 7/8% senior notes due 2023 and €725 million of OIEG 3 1/8% senior notes due 2024.

O-I Glass intends to allocate an amount equal to net proceeds to finance and/or refinance new and/or existing eligible green projects as defined in its Green Financing Framework.

Credit Agricole is the lead green structuring agent.

O-I Glass, formerly Owens-Illinois, Inc., is a container glass manufacturer based in Perrysburg, Ohio.

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