Owens-Brockway to launch $1.25 billion in term loans on Wednesday

By Sara Rosenberg

New York, Aug. 3 – Owens-Brockway Glass Container Inc. (Owens-Illinois Inc.) set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $1.25 billion in term loans, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Scotiabank, Barclays, Rabobank and HSBC Securities (USA) Inc. are the bookrunners on the deal.

The debt consists of a $750 million seven-year covenant-light term loan B and a $500 million term loan A due April 2020, the source said.

The term loan A has a total net leverage covenant.

Commitments are due at noon ET on Aug. 13, the source added.

Proceeds will be used to help fund the acquisition of Vitro, SAB de CV’s food and beverage glass container business in an all-cash transaction valued at about $2.15 billion.

Closing is subject to approval by Vitro’s shareholders and customary regulatory approvals.

Owens-Brockway is a Perrysburg, Ohio-based glass container manufacturer.

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