By Paul A. Harris
St. Louis, Dec. 11 - Owens-Brockway Glass Container Inc. priced a $175 million add-on to its 8¾% senior secured notes due Nov. 15, 2012 (B2/BB) at 100.549 Wednesday for an 8.65% yield to worst, according to a syndicate source.
The deal was increased from a planned size of $150 million.
Salomon Smith Barney, Banc of America Securities and Deutsche Bank Securities Inc. were joint bookrunners. Banc One Capital Markets and Scotia Capital were joint leads. The co-managers were Goldman Sachs & Co., Barclays Capital, BNP Paribas, Credit Lyonnais, Fleet Securities, Keybank, SG Cowen, BNY Capital Markets and TD Securities.
Proceeds from the Rule 144A add-on will be used to repay bank debt.
The Toledo, Ohio glass container manufacturer is an indirect wholly-owned subsidiary of Owens-Illinois Inc.
Issuer: Owens-Brockway Glass Container Inc. (subsidiary of Owens-Illinois Inc.)
Amount: $175 million
Security description: Add-on to 8¾% senior secured notes due Nov. 15, 2012
Managers: Salomon Smith Barney, Banc of America Securities, Deutsche Bank Securities (joint books), Banc One Capital Markets, Scotia Capital (joint leads)
| Maturity: | Nov. 15, 2012
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| Coupon: | 8¾%
|
| Price: | 100.549
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| Yield to worst: | 8.65%
|
| Spread: | 462 basis points over 4 3/8% Treasury due Aug. 15, 2012
|
| Call features: | Callable on Nov. 15, 2007 at 104.375, then at 102.917, 101.458, declining to par on Nov. 15, 2010 and thereafter
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| Equity clawback: | Until Nov. 15, 2005 for 35% at 108.75
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| Settlement date: | Dec. 18, 2002 (T+5) with accrued interest
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| Ratings: | Moody's: B2
|
| Standard & Poor's: BB
|
| Rule 144A Cusip: | 69073TAE3
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