By Paul A. Harris
Portland, Ore., Nov. 18 – Owens-Brockway Glass Container Inc., an indirect wholly owned subsidiary of Owens-Illinois, Inc., priced an upsized $800 million amount of non-callable senior notes (Ba3/BB+) in two tranches on Tuesday, according to a market source.
A $500 million tranche of seven-year notes priced at par to yield 5%, at the tight end of yield talk in the 5 1/8% area.
A $300 million tranche of 10-year notes priced at par to yield 5 3/8%, at the tight end of yield talk in the 5½% area.
The overall amount of bonds offered increased from $700 million.
Deutsche Bank Securities Inc. was the left bookrunner.
BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB and Goldman Sachs & Co. were the joint bookrunners.
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.
| Issuer: | Owens-Brockway Glass Container Inc. (Owens-Illinois, Inc.)
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| Amount: | $800 million, increased from $700 million
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| Securities: | Non-callable senior notes
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| Left bookrunner: | Deutsche Bank Securities Inc.
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| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Goldman Sachs & Co.
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| Co-managers: | HSBC Securities, Scotia Capital, Wells Fargo Securities LLC
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| Trade date: | Nov. 18
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| Settlement date: | Dec. 3
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB+
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| Distribution: | Rule 144A for life and Regulation S
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| Marketing: | Roadshow
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| Seven-year notes
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2022
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| Coupon: | 5%
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| Price: | Par
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| Yield | 5%
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| Spread: | 298 bps
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| Price talk: | 5 1/8% area
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| 10-year notes
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| Amount: | $300 million
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| Maturity: | Jan. 1, 2025
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| Spread: | 305 bps
|
| Price talk: | 5½% area
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