New Issue: Owens-Brockway upsizes to $600 million, prices 7 3/8% seven-year notes at 96.724

By Paul A. Harris

St. Louis, May 7 - Owens-Brockway Glass Container Inc. priced an upsized $600 million issue of 7 3/8% seven-year senior notes (Ba3/BB/) at 96.724 to yield 8% on Thursday, according to market sources.

The yield printed on top of the yield talk.

J.P. Morgan Securities Inc., Banc of America Securities LLC and Deutsche Bank Securities Inc. were joint bookrunners for the Rule 144A and Regulation S with registration rights issue, which was doubled in size, from $300 million.

Proceeds will be used to take out Owens-Illinois, Inc.'s $250 million of 7½% senior debentures due May 15, 2010 and for general corporate purposes.

The issuer is based in Perrysburg, Ohio.

Issuer:	Owens-Brockway Glass Container Inc.
Face amount:	$600 million, increased from $300 million
Proceeds:	$580.344 million
Maturity:	May 15, 2016
Security description:	Senior notes
Bookrunners:	J.P. Morgan Securities Inc., Banc of America Securities LLC, Deutsche Bank Securities Inc.
Co-managers:	Barclays Capital Inc., BNP Paribas Securities Corp., Calyon Securities (USA) Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Scotia Capital (USA) Inc.
Coupon:	7 3/8%
Price:	96.724
Yield:	8%
Spread:	527 bps
Call protection:	Non-callable, make-whole provision at Treasuries plus 50 bps
Equity clawback:	40% at 107.375 May 15, 2012
Change-of-control put:	101%
Trade date:	May 7
Settlement date:	May 12
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8% area

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