Owens-Illinois enters up to $3 billion five-year amended facility

By Wendy Van Sickle

Columbus, Ohio, June 26 – 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 on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for up to $3 billion of borrowings, consisting of a $300 million revolving facility, a $1.2 billion multicurrency revolving facility, a $600 million tranche A term loan, a $200 million tranche B term loan, a $110 million tranche C term loan and a $590 million tranche D term loan.

The revolver and each term loan tranche mature in June 2024.

Interest is Libor plus 100 basis points to 150 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 5 times through June 30, stepping down to 4.75 times on June 30, 2020 and 4.5 times on Dec. 31, 2020. 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.

Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., CoBank, ACB, BofA Securities, Inc., Bank of Nova Scotia, BNP Paribas Securities Corp., Credit Agricole CIB and JPMorgan Chase Bank, NA acted as joint lead arrangers and bookrunners.

Barclays Bank plc, Rabobank, UA, New York Branch, Goldman Sachs Lending Partners LLC, HSBC Securities USA, Inc. and TD Bank, NA acted as documentation agents.

The credit agreement amends and restates Owens-Illinois Group’s prior credit agreement dated June 27, 2018.

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

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

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