Owens-Illinois' term loan traded up to the high 97 range from the 95 range early last week on the rumor of a potential bond deal. Dealers reported the trading volume was small, and the bond issue rumblings could not be confirmed. "It's just word going around the market. People are willing to trade on the momentum," a dealer said. The revolver was quoted at 92 early last week. Owens Illinois is a glass manufacturer based in Toledo, Ohio. Calls to R. Scott Trumbull, cfo, were not returned. A spokeswoman also did not return calls by press time.
Owens Illinois' debt was trading at 94-95 early this month on good numbers released from the company. The company indicated that improving energy costs, reduced interest expense and lower fixed costs are continuing to have a favorable impact on the company's performance. Deutsche Bank, Bank of America and Mizuho lead the $7 billion deal, which is split into a $4.5 billion revolver and a $2.5 billion term loan. It expires in 2004. Pricing is linked to the company's leverage ratio.