Owens-Illinois enters up to $2.1 billion five-year amended facility

By Tali Rackner

Norfolk, Va., April 27 – Owens-Illinois Group, Inc. entered into an amended and restated credit agreement and syndicated facility agreement with Deutsche Bank AG, New York Branch as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for up to roughly $2.1 billion of borrowings, consisting of a $300 million revolving facility, $600 million multicurrency revolving facility, $600 million term loan A facility, €278.81 million term loan A facility and a $300 million delayed-draw term loan facility.

The term loans mature, and the revolving credit facilities terminate, in April 2020.

Interest is Libor plus 125 basis points to 175 bps, based on leverage. The commitment fee ranges from 20 bps to 30 bps, also based on leverage.

The credit agreement also contains one financial maintenance covenant that requires Owens-Illinois to maintain a maximum leverage ratio of 4 times. The ratio is subject to an increase of 0.5 times for the four fiscal quarters following the consummation of certain qualifying acquisitions as specified in the agreement.

Proceeds will be used to repay the loans under the existing credit agreement and pay related fees and expenses, and for general corporate purposes.

Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Bank of Nova Scotia, BNP Paribas, Credit Agricole Corporate & Investment Bank and J.P. Morgan Securities LLLC are joint lead arrangers and bookrunners; Bank of America, NA is the syndication agent; and Barclays Bank plc, Cobank, ACB, Coӧperatieve Centrale Raiffeisen — Boerenleenbank BA, New York Branch, Goldman Sachs Bank USA and HSBC Bank USA, NA are co-documentation agents.

Owens-Illinois is a Perrysburg, Ohio-based glass container maker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.