Owens Illinois traded in the 90s range in the wake of a favorable bank meeting. The size of the piece could not be determined by press time, but one market player who attended a bank meeting early last week says the company is making progress, despite any asbestos ties. "I'm hearing positive things about them," he said, noting that the company is offering the banks collateral. "Are they completely out of the water? No. But the guys that are in that deal are going to be in a lot better. It's a good company with solid cash flow. It's well-run with a good management team," he said. "And there are no current asbestos issues, just liabilities from the 1950s hanging over the company's head." Two weeks ago the company's bank debt was trading up to the mid-80s.
While levels for asbestos-related names plummeted late last year, a more active market and debt restructuring for some companies has helped these names inch back up. The company has a $7 billion credit facility that breaks down into two tranches. Pricing is 100 basis points over LIBOR. Bankers Trust Co., Bank of Nova Scotia, Bank of America are the lead arrangers, according to Capital DATA Loanware.