Owens-Illinois lines up USD 2 billion in credit

Glass-container maker Owens-Illinois Inc. said 25 May 2011 that it had obtained USD 2 billion in credit due in 2016, which it plans to use to refinance debt dating back to 2006.
The company“s new se…

Glass-container maker Owens-Illinois Inc. said 25 May 2011 that it had obtained USD 2 billion in credit due in 2016, which it plans to use to refinance debt dating back to 2006. The company“s new secured credit agreement is comprised of USD 1.1 billion in term loans and a USD 900 million revolving credit line. The agreement expires in May 2016. Owens-Illinois will use proceeds from the new credit agreement to pay debt borrowed against the company“s 2006 credit agreement, which had been scheduled to come due June 2012. The company also plans to use proceeds from the new credit agreement to fund the redemption of USD 400 million in 6.75% senior notes, due 2014. Owens-Illinois claims that it anticipates no significant change in its total debt outstanding as a result of the new credit agreement, but it does expect to incur a lower interest expense. It estimates that full-year 2011 net interest expense will be USD 280 million, excluding the impact of redemption premiums and the write-off of finance fees.