Owens-Brockway launches $750 million term B at Libor plus 275-300 bps

By Sara Rosenberg

New York, Aug. 5 – Owens-Brockway Glass Container Inc. (Owens-Illinois Inc.) launched on Wednesday its $750 million seven-year covenant-light term loan B with price talk of Libor plus 275 basis points to 300 bps with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months, the source said.

Along with the term loan B, the company is getting a $500 million term loan A due April 2020 that has a total net leverage covenant.

Price talk on the term loan A is Libor plus 175 bps with a 25 bps upfront fee.

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 $1.25 billion in term loans.

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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