Owens-Brockway to price $150 million add-on Wednesday

By Paul A. Harris

St. Louis, Dec. 10 - Owens-Brockway Glass Container Inc. plans to price a $150 million add-on to its 8¾% senior secured notes due Nov. 15, 2012 (existing ratings B2/BB) on Wednesday, according to a market source.

Unofficial price guidance is for a yield of 8½%.

Salomon Smith Barney, Banc of America Securities and Deutsche Bank Securities Inc. are joint bookrunners.

The Rule 144A notes are callable on Nov. 15, 2007 at 104.375, on Nov. 15, 2008 at 102.917, on Nov. 15, 2009 at 101.458, and at par on Nov. 15, 2010 and thereafter. They also contain an equity clawback until Nov. 15, 2005 for 35% at 108.75.

Proceeds will be used to repay bank debt.

The Toledo, Ohio-based issuer, a wholly-owned subsidiary of Owens-Illinois Inc., is a glass container manufacturer.

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