New Issue: Owens-Illinois upsizes to €225 million, prices tap of 2024 notes at par to yield 3 1/8%

By Paul A. Harris

Portland, Ore., March 20 – Owens-Illinois Group, Inc. priced an upsized €225 million add-on to OI European Group BV’s 3 1/8% senior notes due Nov. 15, 2024 (Ba3/BB) at par to yield 3 1/8% on Monday, according to a market source.

The amount was increased from €200 million.

The reoffer price came at the rich end of the 99.5 to par price talk.

Credit Agricole CIB was the global coordinator and joint bookrunner. Credit Agricile, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan and BofA Merrill Lynch were also joint bookrunners.

Proceeds will be used to pay down the company’s revolving credit facility.

Owens-Illinois is a Perrysburg, Ohio-based glass container manufacturer. OI European Group is an indirect wholly owned subsidiary based in Schiedam, Netherlands.

Issuer:	OI European Group BV
Amount:	€225 million, increased from €200 million
Maturity:	Nov. 15, 2024
Security description:	Add-on to 3 1/8% senior notes due Nov. 15, 2024
Global coordinator:	Credit Agricole
Bookrunners:	Credit Agricole, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, BofA Merrill Lynch
Co-managers:	Scotiabank, Wells Fargo, Westpac
Coupon:	3 1/8%
Price:	Par
Yield:	3 1/8%
Spread:	310 bps
Call:	Make-whole call at 50 bps over Bunds until Aug. 15, 2024, then callable at par
Trade date:	March 20
Settlement date:	March 27 with accrued interest
Ratings:	Moody’s: Ba3
	Standard & Poor’s: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	99.5 to par
Marketing:	Quick to market
Original issue:	€600 million of issue priced at par on Oct. 28, 2016
Total issue size:	€825 million

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