Owens-Brockway $650 million dollar/euro bonds talked at 6¾% to 7%

By Paul A. Harris

St. Louis, Nov. 22 - Owens-Brockway Glass Container Inc.'s $650 million equivalent of 10-year senior notes (B2/B) were talked at 6¾% to 7%, according to a syndicate source.

The offering is being sold in both dollar-denominated and euro-denominated tranches that are expected to price on Tuesday. Tranche sizes are to be determined.

The notes are non-callable for five years.

Goldman Sachs & Co. has the physical books for the Rule 144A/Regulation S with registration rights offering. Citigroup is the joint bookrunner. Banc of America Securities, BNP Paribas, Deutsche Bank Securities and Scotia Capital are co-lead managers. Calyon Securities and JP Morgan are co-managers.

Proceeds, together with borrowings under the company's secured credit agreement, if necessary, will be used to fund the purchase by Owens-Illinois Inc. of its $350 million of outstanding 7.15% senior notes due 2005, to fund the purchase by BSN Glasspack SA, an affiliate of Owens-Brockway Glass Container Inc., of the €140 million of outstanding 10¼% senior subordinated notes due 2009 of BSN Financing Co. SA and to fund the purchase by BSN Glasspack SA of BSN Glasspack Obligation SA's €160 million of 9¼% senior subordinated notes due 2009.

Owens-Brockway is a Toledo, Ohio-based container company.

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