Published on 8/11/2015 in the Prospect News High Yield Daily.
New Issue: Owens-Illinois prices $1 billion notes in two bullet tranches
By Paul A. Harris
Portland, Ore., Aug. 11 – Owens-Brockway Glass Container Inc., a wholly owned subsidiary of Owens-Illinois, Inc., priced $1 billion of non-callable senior notes (B1/BB-) in two tranches on Tuesday, according to market sources.
The deal included $700 million of 5 7/8% eight-year notes, which priced at 99.219 to yield 6%. The yield printed on top of yield talk as well as on top of initial guidance.
The deal also included $300 million of 10-year notes, which priced at par to yield 6 3/8%. The yield also printed on top of yield talk, as well as initial guidance.
Deutsche Bank Securities Inc., BofA Merrill Lynch, BNP Paribas, Credit Agricole CIB, Goldman Sachs & Co., J.P. Morgan Securities LLC and Scotia Capital were the joint bookrunners.
The Perrysburg, Ohio-based glass container manufacturer plans to use the proceeds to help fund its acquisition of the food and beverage glass containers business of Vitro, SAB de CV and its subsidiaries as conducted in the United States, Mexico and Bolivia.
| Issuer: | Owens-Brockway Glass Container Inc., a wholly owned subsidiary of Owens-Illinois, Inc.
|
| Face amount: | $1 billion
|
| Proceeds: | $994.53 million
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Merrill Lynch, BNP Paribas, Credit Agricole CIB, Goldman Sachs & Co., J.P. Morgan Securities LLC, Scotia Capital
|
| Co-managers: | Barclays, HSBC, Rabo Securities
|
| Call: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Trade date: | Aug. 11
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Face amount: | $700 million
|
| Proceeds: | $694.53 million
|
| Maturity: | Aug. 15, 2023
|
| Coupon: | 5 7/8%
|
| Price: | 99.219
|
| Yield: | 6%
|
| Spread: | 400 bps
|
| Price talk: | 6% area
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 423 bps
|
| Price talk: | 6 3/8% area
|
| Price talk: 6 3/8% area
|
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