S&P assigns BBB- to Owens-Illinois loan

S&P said it assigned its BBB- issue-level and 1 recovery ratings to the proposed $1.9 billion senior secured credit facility issued by Owens-Illinois Inc.'s subsidiaries.

The facilities include a $300 million revolving credit facility, a $700 million multicurrency revolving credit facility and a $900 million term loan facility. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate: 95%) in a default scenario.

All of the other ratings on Owens-Illinois, including the BB corporate credit rating, are unchanged.

“We view the proposed transaction as leverage-neutral and still expect the company to maintain adjusted debt to EBITDA below 5x over the next 18-24 months,” S&P said in a news release.

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