Owens-Illinois is bringing a $1.5 billion refinancing deal to the market and senior managing agent-level lenders are looking at the credit. A banker familiar with the situation could not confirm structural details at this point. However, a company conference call stated that the facility would include a revolver and "B" piece in the amount that the market would accept. The call noted that the glass container company would do whatever else it needed to refinance the $2.45 billion debt load, for example an additional high-yield offering in dollars or Euros. The refinancing plans are targeted to be complete by the first half of this year. Owens-Illinois refinanced $1.6 billion of its debt in 2002, primarily through bonds.
The company's existing facility was moving in the secondary market last week, one trader said, pointing to a reaction to plans for a new deal. The existing revolver traded in the 98 5/8- 99 1/2 context, while Owens-Illinois' term loan was in the 99 5/8 to par range, he added. The Toledo, Ohio-based company's last facility in 2001 was originally for $4.5 billion and included term loans and a revolver priced at LIBOR plus 2-21/2%. Bank of America and Deutsche Bank lead the existing deal, with Scotia Capital signed on as well. Owens-Illinois, B of A and Deutsche Bank officials declined to comment, while a Scotia banker did not return calls.