Owens-Illinois to price $700 million two-part bullet notes on Tuesday

By Paul A. Harris

Portland, Ore., Nov. 17 – Owens-Brockway Glass Container Inc., an indirect wholly owned subsidiary of Owens-Illinois, Inc., set price talk for its $700 million two-part offering of non-callable senior notes (Ba3/expected BB+) on Tuesday, according to a market source.

The seven-year notes are talked to yield in the 5 1/8% area.

The 10-year notes are talked to yield in the 5½% area.

Tranche sizes remain to be determined.

Books close at 9 a.m. ET on Tuesday, and the deal is set to price thereafter.

The deal was marketed via a Monday investor conference.

Deutsche Bank Securities Inc. is the left bookrunner for the Rule 144A for life offering.

BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB and Goldman Sachs & Co. are the joint bookrunners.

HSBC Securities (USA) LLC, Scotia Capital and Wells Fargo Securities LLC are the co-managers.

The Perrysburg, Ohio-based glass container maker plans to use the proceeds to fund the tender for its 3% convertible securities and for general corporate purposes, which may include repayment of revolver borrowings.

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