By Paul A. Harris
Portland, Ore., May 6 – O-I Glass, Inc. priced an upsized $700 million issue of seven-year senior notes (B1/B) at par to yield 6 5/8% in a Wednesday drive-by, according to market sources.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were 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.
The notes were issued via Owens-Brockway Glass Container Inc.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the 7% area.
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.
| Issuer: | Owens-Brockway Glass Container Inc.
|
| Amount: | $700 million, increased from $500 million
|
| Maturity: | May 13, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | 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
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 606 bps
|
| Call protection: | Two years
|
| Trade date: | May 6
|
| Settlement date: | May 13
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Drive-by
|
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