By Paul Deckelman
New York, Oct. 28 – Owens-Illinois Group, Inc. priced €600 million of senior notes (Ba3/BB) due 2024 on Friday, high-yield syndicate sources said.
The notes, to be issued through the company’s OI European Group BV, priced at par to yield 3 1/8%, at the high end of price talk in the 3% area.
The deal was brought to market via J.P. Morgan Securities LLC, the global coordinator, responsible for billing and delivery.
The syndicate also includes fellow global coordinator Credit Agricole Corporate and Investment Bank, as well as joint bookrunners BNP Paribas Securities Corp., Merrill Lynch International and Deutsche Bank AG London Branch.
The notes are being sold under Rule 144A and Regulation S.
They are non-callable, other than via a make-whole call at 50 basis points over Bunds, until Aug. 15, 2024 – three months before their scheduled maturity – and then may be redeemed at par.
There is a change-of-control provision allowing holders to put the bonds back to the issuer at 101% of their principal value plus accrued interest.
Owens-Illinois, a Perrysburg, Ohio-based glass container manufacturer, and O-I European Group, an indirect wholly owned subsidiary based in Schiedam, Netherlands, announced the offering on Thursday and priced it on Friday.
Proceeds will be used to repay the company’s term loan B, which had $568 million outstanding as of Sept. 30, 2016, and for general corporate purposes.
| Issuer: | OI European Group BV (indirect wholly owned subsidiary of Owens-Illinois Group, Inc.)
|
| Security description: | Senior notes
|
| Maturity: | Nov. 15, 2024
|
| Amount: | € 500 million
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| Global coordinators: | J.P. Morgan (billing and delivery), Crédit Agricole Corporate and Investment Bank
|
| Bookrunners: | BNP Paribas Securities Corp., Deutsche Bank AG, London Branch, Merrill Lynch International
|
| Co-managers: | Banca IMI SpA, Citigroup Global Markets Ltd., Coöperatieve Rabobank UA, Scotiabank Europe plc
|
| Coupon: | 3 1/8%
|
| Price: | Par
|
| Yield: | 3 1/8%
|
| Spread | 326 bps over 1% DBR due Aug.15, 2024
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| Call: | Make-whole call at 50 bps over Bunds until Aug. 15, 2024, then callable at par
|
| Change of control: | Put at 101
|
| Ratings | Moody’s Ba3
|
| S&P: BB
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| Trade date: | Oct. 28
|
| Settlement Date: | Nov. 3
|
| Distribution: | Rule 144A/Regulation S for life
|
| Marketing: | Short roadshow
|
| Price talk: | 3% area
|
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