Owens-Illinois' $2.1 billion refinancing deal has already gained commitments, with bankers expecting that the $600-700 million "B" loan could be oversubscribed before the meeting this Wednesday. One banker said several lenders were in on the facility even before any structural details were announced. Another banker said the credit's structure was still being ironed out late last week. He declined to specify pre-launch commitment levels on the deal. The structure is set for a $1.3-1.4 billion pro rata portion that includes a revolver and an "A" piece both priced at LIBOR plus 31/4%. Another banker said the "B" loan would be in the $700 million range with a spread of LIBOR plus 31/2%. This would be at the low-end of the initial LIBOR plus 31/2-33/4% price talk for the tranche. He added that the institutional piece carries a 1/4% up-front fee.
Deutsche Bank, Bank of America, Scotia Capital, Citigroup and Bank One will be shopping the glass container company's deal. Market players agreed that the timing for the credit will work in the company's favor. One investor said despite the company's lackluster first quarter earnings results, the deal will still be successful considering the opportune market timing, pointing to a hot bond market and relatively light new issue loan volume. The refinancing package coincides with the Owens-Brockway Glass Container subsidiary's offering of $450 million in senior secured notes and $350 million of senior notes in a private offering. Officials from the lead banks either did not return calls or declined to comment. Thomas Young, Owens' cfo, did not return calls, and an Owens spokeswoman declined to comment.