Price talk, syndicate information emerge on Owens-Brockway's $800 million two-tranche deal

By Paul A. Harris

St. Louis, April 28 - Price talk and syndicate information emerged Monday on the two-tranche $800 million Rule 144A bond offering from Owens-Brockway Glass Container, Inc.

The deal is expected to price on Wednesday, according to a syndicate source.

The two tranches have slightly different bookrunning groups, the source added.

Price talk is for a yield in the 7¾% area on the $450 million of eight-year non-call-four senior secured notes (B1/BB/BB). Bookrunners for the senior secured tranche are Deutsche Bank Securities Inc., Bank of America Securities and Citigroup.

The $350 million tranche of 10-year non-call-five senior notes (B2/B+/B+), meanwhile, are being talked 50 basis points behind the senior secured tranche. Bookrunners on the 10-year notes are Deutsche Bank Securities, Banc One Capital Markets and Citigroup.

Proceeds will be used to repurchase $300 million of the company's 7.85% senior notes due 2004 and permanently reduce the revolver which matures 2004.

The issuer is a wholly-owned subsidiary of Owens-Illinois, Inc.

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