By Paul A. Harris
St. Louis, Mo., Jan. 16 - Owens-Brockway Glass Container Inc. upsized to $1 billion its offering of senior secured notes due Feb. 15, 2009 and priced the securities at par to yield 8 7/8%, according to a syndicate source.
The deal was announced at $300 million and increased earlier in the week to $500 million.
"At the time price talk went out it was upsized to $500 billion," the syndicate official commented. "Subsequently we got really great demand and it was upsized to $1 billion."
Noting that price talk had been 8¾%-9%, the official said that Owens-Brockway "priced at the midpoint" of talk.
"This was a fabulous execution," the syndicate source added. "Very oversubscribed, very strong demand."
Banc of America Securities ran the books on the Rule 144A notes. Co-managers were Deutsche Banc Alex. Brown, Morgan Stanley, and Scotia Capital.
| Issuer: | Owens-Brockway Glass Container, Inc. (subsidiary of Owens-Illinois, Inc.)
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| Amount: | $1 billion (upsized from $500 million)
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| Maturity: | Feb. 15, 2009
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| Type: | Senior secured notes
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| Manager: | Banc of America Securities
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| Coupon: | 8 7/8%
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| Price: | Par
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| Yield: | 8 7/8%
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| Spread: | 425 basis points over 5½% Treasury due May 15, 2009
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| Call features: | Callable on Feb. 15, 2006 at 104.438, then at 102.219, declining to par on Feb. 15, 2008 and thereafter
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| Equity clawback: | Until Feb. 15, 2005 for 35% at 108.875
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| Settlement date: | Jan. 24 (T+5) flat
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| Ratings: | Moody's: B2
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| Standard & Poor's: BB
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| Cusip: | 69073TAA1
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| End
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