O-I Glass to sell $500 million seven-year senior notes on Wednesday; whisper in 7% area

By Paul A. Harris

Portland, Ore., May 6 – O-I Glass, Inc. plans to price a $500 million offering of seven-year senior notes (B1/B) in a Wednesday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the 7% area, a trader said.

BofA Securities Inc. is the left bookrunner. BNP Paribas Securities Corp., Credit Agricole CIB, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The issuing entity will be Owens-Brockway Glass Container Inc., a wholly owned subsidiary of O-I Glass.

The Perrysburg, Ohio-based glass container manufacturer plans to use the proceeds to redeem the remaining €118 million of the OI European Group BV 2021 notes and to repay $105 million under the bilateral term loan, with remaining proceeds to redeem a portion the outstanding 2022 notes.

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