New Issue: Owens-Brockway upsizes 10-year notes to $450 million, yields 8¾%

By Paul A. Harris

St. Louis, Nov. 5 - Owens-Brockway Glass Container Inc. upsized to $450 million from $300 million its offering of senior secured notes due Nov. 15, 2012 (B2/BB) and priced them Tuesday at par to yield 8¾%, according to a syndicate source.

Price talk was 8¾%-8 7/8%.

Salomon Smith Barney, Banc of America Securities and Deutsche Bank Securities Inc. were joint bookrunners, and Banc One Capital Markets and Scotia Capital were joint leads. The co-managers were Goldman Sachs & Co., Barclays Capital, BNP Paribas, Fleet Securities, KeyBank, SG Cowen, BNY Securities and TD Securities.

Proceeds will be used to repay bank debt.

The issuer, a Toledo, Ohio-based wholly owned subsidiary of Owens-Illinois Inc. manufactures glass and plastic packaging.

Issuer: Owens-Brockway Glass Container Inc.

Amount:	$450 million (increased from $300 million)
Maturity:	Nov. 15, 2012
Type:	Senior secured notes
Managers:	Salomon Smith Barney, Banc of America Securities, Deutsche Bank Securities (joint books) Banc One Capital Markets, Scotia Capital (joint leads)
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Price talk:	8¾%-8 7/8%
Spread:	467 basis points
Call features:	Callable on Nov. 15, 2007 at 104.375, then at 102.917, 101.458, par on Nov. 15, 2010 and thereafter
Equity clawback:	Until Nov. 15, 2005 for 35% at 108.75
Settlement date:	Nov. 13 (T+5)
Ratings:	Moody's: B2
	Standard & Poor's: BB
Rule 144A Cusip:	69073TAC7

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