By Paul A. Harris
St. Louis, March 7 - OI European Group BV, an indirect wholly owned subsidiary of Owens-Illinois, Inc., priced a €300 million issue of 10-year senior notes (B3/B/B) at par to yield 6 7/8% on Wednesday, according market sources.
The yield came in the middle of the 6¾% to 7% price talk.
BNP Paribas, Citigroup and JP Morgan were joint bookrunners for the Rule 144A for life and Regulation S notes. Barclays Capital and HSBC were co-managers.
Proceeds will be used to repay debt under the company's existing secured credit facility. In May 2007, a subsidiary borrower of Owens-Illinois, Inc. intends to borrow under the secured credit agreement in order to repay all outstanding $300 million of Owens-Illinois, Inc.'s 8.10% senior notes due May 15, 2007.
The new euro-denominated senior notes will be guaranteed by Owens-Illinois, a Toledo, Ohio, manufacturer of glass containers, plastic health care packaging and plastic closure systems.
| Issuer: | OI European Group BV (Owens-Illinois Group Inc.)
|
| Amount: | €300 million
|
| Maturity: | March 31, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | BNP Paribas, Citigroup, JP Morgan
|
| Co-managers: | Barclays Capital, HSBC
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 296 bps
|
| Call features: | Callable on March 31, 2012 at 103.438, 102.292, 101.146, par on and after March 31, 2015
|
| Trade date: | March 7
|
| Settlement date: | March 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: B
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 6¾% to 7%
|
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