Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Owens-Illinois Inc. > News item |
Owens-Illinois plans debt reduction through sale of packaging business
By Susanna Moon
Chicago, June 11 - Owens-Illinois, Inc. plans to redeem some of its senior secured debt due 2009, 2011 and 2012, according to a press release.
Funding for the redemption will come from the company's sale of its plastics packaging business to Rexam plc for $1.825 billion in cash.
The bulk of the proceeds will be used to reduce the debt due 2009, 2011 and 2012.
The company has entered a definitive agreement. The deal is expected to close early in the third quarter.
Goldman, Sachs & Co. is the company's financial adviser.
"This sale and the subsequent debt reduction will give us greater operating flexibility and allow us to better focus resources to improve our core glass business," Al Stroucken, Owens-Illinois's chairman and chief executive officer, said in the press release.
Owens-Illinois is a Toledo, Ohio-based manufacturer of glass containers, plastic health care packaging and plastic closure systems.
© 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.