By Paul A. Harris
Portland, Ore., May 12 – O-I Glass, Inc. priced two upsized tranches of senior green notes via two of its indirect, wholly owned subsidiaries on Friday, according to market sources.
Owens-Brockway Glass Container Inc. (OBGC) priced an upsized $690 million tranche of eight-year notes (B2/B+) at par to yield 7¼%.
The tranche downsized from $700 million after upsizing from $500 million.
The yield printed at the tight end of price talk in the 7 3/8% area. Initial guidance was in the mid-to-high 7% area.
The dollar tranche ended up playing to over $2 billion of demand, sources said.
The bonds were going out at par 3/8 bid, par 5/8 offered, a trader said.
Wells Fargo Securities LLC was the left lead for the OBGC notes.
OI European Group BV (OIEG) priced an upsized €600 million tranche of five-year notes (Ba3/BB-) at par to yield 6¼%.
The tranche was increased in size from €500 million.
The yield printed 12.5 basis points inside of yield talk in the 6½% area. Early guidance was in the mid-to-high 6% area.
JPMorgan was the left lead for the OIEG notes.
The OIEG notes come with guarantees which render them superior in credit quality to the OBGC dollar notes.
Proceeds from both tranches 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. The incremental proceeds resulting from the $190 million and €100 million tranche size increases will be used to refinance dollar-denominated notes maturing in 2025.
O-I Glass intends to allocate an amount equal to the 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.
| Company: | O-I Glass, Inc.
|
| Issue: | Senior green notes
|
| Global coordinators: | Wells Fargo, JPMorgan and Credit Agricole
|
| Joint bookrunners: | Wells Fargo, JPMorgan, Credit Agricole, BNP Paribas, BofA, Deutsche Bank, Goldman Sachs, Mizuho, Rabobank and Scotiabank
|
| Trade date: | May 12
|
| Settlement date: | May 25
|
|
|
| Notes due 2031
|
| Issuer: | Owens-Brockway Glass Container Inc.
|
| Amount: | $690 million, decreased from $700 million after having increased from $500 million
|
| Maturity: | May 15, 2031
|
| Left bookrunner: | Wells Fargo
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 388 bps
|
| Call protection: | Three years
|
| Ratings: | Moody’s: B2
|
| S&P: B+
|
| Price talk: | 7 3/8% area
|
|
|
| Notes due 2028
|
| Issuer: | OI European Group BV
|
| Amount: | €600 million
|
| Maturity: | May 15, 2028
|
| Left bookrunner: | JPMorgan
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 408 bps
|
| Call protection: | Two years
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Price talk: | 6½% area
|
|
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