By Paul A. Harris
St. Louis, Nov. 23 - Owens-Brockway Glass Container Inc. priced an upsized $694 million equivalent of 10-year senior notes (B2/B) at par to yield 6¾% on Tuesday.
Price talk was 6¾% to 7%.
The issue was comprised of $400 million and €225 million mirror tranches.
Goldman Sachs & Co. had the physical books for the Rule 144A/Regulation S with registration rights issue. Citigroup was the joint bookrunner. Banc of America Securities, BNP Paribas, Deutsche Bank Securities and Scotia Capital were co-lead managers. The co-managers were Calyon Securities and JP Morgan.
Proceeds, together with borrowings under the company's secured credit agreement, if necessary, will be used to fund the tender by Owens-Illinois Inc. for $350 million of 7.15% senior notes due 2005, by BSN Glasspack SA for €140 million, the 10¼% senior subordinated notes due 2009 of BSN Financing Co. SA and by BSN Glasspack SA for €160 million and the 9¼% senior subordinated notes due 2009 of BSN Glasspack Obligation SA.
Owens-Brockway is a Toledo, Ohio-based container company.
Issuer: Owens-Brockway Glass Container Inc.
| Amount: | $694 million equivalent (increased from $650 million)
|
| Dollar tranche amount: | $400 million
|
| Euro tranche amount: | €225 million
|
| Maturity: | Dec. 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. (physical books), Citigroup (joint bookrunner)
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Dollar spread: | 256 basis points
|
| Euro spread: | 304 basis points
|
| Call features: | Make-whole call at Bunds/Treasuries plus 50 basis points until Dec. 1, 2009, then callable at 103.375, 102.25, 101.125, par on or after Dec. 1, 2012
|
| Equity clawback: | Until Dec. 1, 2007 for 40% at 106.75
|
| Pricing date: | Nov. 23
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Price talk: | 6¾%-7%
|
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