Owens-Illinois amends agreement to provide $500 million of term loans

By Mary-Katherine Stinson

Lexington, Ky., Aug. 31 – Owens-Illinois Group, Inc., a direct wholly owned subsidiary of O-I Glass, Inc., amended its credit agreement and syndicated facility agreement with Wells Fargo Bank, NA to provide up to $500 million in term loans, according to an 8-K filing with the Securities and Exchange Commission.

The term loans mature in March 2027 and bear interest at SOFR plus a margin ranging from 150 basis points to 225 bps based on the total leverage ratio.

In addition, the amendment makes modifications to certain loan documents to give the company increased flexibility to incur secured debt in the future.

The amended agreement contains the same covenants and restrictions and are subject to the same financial maintain covenant as in the original credit agreement.

Owens-Illinois General Inc. is the borrowers’ agent for the amended agreement.

Wells Fargo Bank is the administrative agent and collateral agent.

Joining Wells Fargo as lenders on the amended agreement are Credit Agricole CIB, Cooperatieve Rabobank UA New York Branch, Bank of America, NA, BNP Paribas, JPMorgan Chase Bank, NA, Bank of Nova Scotia, CoBank ACB, Mizuho Bank, Ltd., Goldman Sachs Bank USA, Goldman Sachs Lending Partners LLC, TD Bank, NA, Barclays, HSBC USA, NA, KeyBank NA and Woodforest National Bank.

Wells Fargo Securities, LLC, Credit Agricole CIB, Cooperatieve Rabobank UA New York Branch, BofA Securities, Inc., BNP Paribas Securities Corp., JPMorgan Chase Bank, NA, Bank of Nova Scotia and CoBank ACB are the joint lead arrangers and joint bookrunners on the original credit agreement and syndicated facility agreement dated March 25.

Cooperatieve Rabobank UA New York Branch is the sustainability coordinator.

Mizuho Bank, Ltd., Deutsche Bank AG New York Branch, Goldman Sachs Lending Partners LLC and Goldman Sachs Bank USA are the documentation agents on the original agreement.

Proceeds of the new term loans will be used, together with cash, to retire in full the $600 million of term loans outstanding under the original credit agreement, which would otherwise have matured in December 2023.

Owens-Illinois is a Perrysburg, Ohio-based glass container manufacturer.

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