Owens-Brockway gives early results of $250 million capped tender offer

By Rebecca Melvin

Concord, N.H., Feb. 25 – Owens-Brockway Glass Container Inc. announced the early results of its Feb. 10 cash tender offer to purchase notes from four series for up to $250 million, according to a press release.

All of the notes are guaranteed by parent company Owens-Illinois Group, Inc.

As of the early tender time at 5 p.m. ET on Feb. 24, $1,085,557,000 of notes from four series had been tendered, and the company has accepted for purchase $238,179,000 from two series.

Owens-Brockway Glass has opted for an early settlement on Feb. 28.

The company received tenders for the following notes, listed by descending acceptance priority level:

• $444,751,000 principal amount of its $700 million outstanding 5 7/8% senior notes due 2023 (Cusips: 69073TAR4, U68337AK7), of which $150 million was accepted with a 33.8% proration factor for purchase at $1,045 per note;

• $351,087,000 principal amount of its $700 million outstanding 6 5/8% senior notes due 2027 (Cusips: 69073TAT0, U68337AM3), of which $88,179,000 was accepted with a 25.2% proration factor for purchase at $1,057.50 per note;

• $175,126,000 principal amount of its $300 million outstanding 6 3/8% senior notes due 2025 (Cusips: 69073TAS2, U68337AL5), of which $0 was accepted. The purchase price for the series is $1,070 per note; and

• $113,593,000 principal amount of its $300 million outstanding 5 3/8% senior notes due 2025 (Cusips: 690872AB2, U6S19GAC1), of which $0 was accepted. The purchase price for the series is $1,038.75 per note.

The capped amount for the 5 7/8% notes was for up to $150 million, and the capped amount for the 6 5/8% notes due 2027 was for up to $100 million.

The considerations are based on $1,000-par notes, and the total considerations include a $30 early tender premium that will not be paid to noteholders who tender after the early deadline.

Interest will also be paid to the settlement date.

Wells Fargo Securities, LLC is the lead dealer manager (866 309-6316, 704 410-4759, liabilitymanagement@wellsfargo.com).

D.F. King & Co., Inc. is the information and tender agent for the offer (800 549-6746, 212 269-5550, owens@dfking.com).

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

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