Libbey Glass: first time ratings assigned by investor service

Libbey Glass Inc., a leading manufacturer of tableware products in North America and one of the largest glass tableware makers in the world, has been assigned first time ratings by Moody“s Investors …

Libbey Glass Inc., a leading manufacturer of tableware products in North America and one of the largest glass tableware makers in the world, has been assigned first time ratings by Moody“s Investors Service. The move is in response to Libbey Glass“ 2 April 2006 announcement of a definitive agreement to purchase the remaining 51% of Vitrocrisa Holdings, S de R.L. de C.V., its Mexican joint venture with Vitro SA, for approximately USD 80 million plus the assumption of USD 65 million Crisa debt. At the same time, Moody“s assigned a Speculative Grade Liquidity rating of SGL-3, reflecting the expectation of marginal near-term liquidity. The rating outlook is stable. The USD 400 million of senior unsecured notes, which will be sold under rule 144A, along with a portion of a new USD 150 million secured revolving credit facility (not rated by Moody“s) plus balance sheet cash, will be used to finance the acquisition, refinance existing Libbey and Crisa debt, and pay fees and expenses. Moody“s has assigned the following ratings: B2 corporate family rating to Libbey Glass Inc.; B3 to the proposed USD 400 million senior unsecured notes due 2014; and a Speculative Grade Liquidity rating of SGL-3. The rating outlook is stable. The assigned ratings are subject to the closing of the proposed acquisition and the final review of executed documents.