PERRYSBURG, Ohio, May 23, 2011 /PRNewswire/ -- Owens-Illinois, Inc., (NYSE: OI) today announced
that certain of its subsidiaries have entered into a five-year
senior secured credit agreement totaling $2
billion. The new agreement, which has a maturity date of
May 2016, is comprised of
$1.1 billion in term loans and a
$900 million revolving credit
facility. Proceeds from borrowings under the new credit agreement
will be used to repay all amounts outstanding under, and terminate,
the Company's 2006 Credit Agreement, which had been scheduled to
mature in June 2012.
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Furthermore, on May 20, 2011, a
subsidiary of the Company delivered a Notice of Redemption calling
for the May 31, 2011, redemption of
its $400 million aggregate principal
amount of U.S. dollar denominated 6.75% Senior Notes due 2014.
Proceeds from borrowings under the new credit agreement also
will be used to fund this redemption.
Commenting on the Company's new credit agreement, Ed White, O-I senior vice president and chief
financial officer, said, "The current favorable credit market
presented an ideal opportunity to refinance our bank credit
agreement. The attractive pricing under the new agreement will
allow us to reduce interest expense as we redeem a portion of our
more expensive fixed rate bonds."
At the Company's current leverage ratio, pricing for the new
agreement is Libor plus 175 basis points. Overall, the Company
anticipates no significant change in total debt outstanding as a
result of this new credit agreement. However, the Company does
expect to incur lower interest expense as a result of the above
financing activities. For full year 2011, net interest expense
(excluding the impact of redemption premiums and the write-off of
finance fees) is expected to approximate $280 million at current foreign currency rates
and debt levels.
Forward Looking Statements
This news release contains "forward looking" statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and Section 27A of the Securities Act of 1933. Forward looking
statements reflect the Company's current expectations and
projections about future events at the time, and thus involve
uncertainty and risk. The words "believe," "expect," "anticipate,"
"will," "could," "would," "should," "may," "plan," "estimate,"
"intend," "predict," "potential," "continue," and the negatives of
these words and other similar expressions generally identify
forward looking statements. It is possible the Company's future
financial performance may differ from expectations due to a variety
of factors including, but not limited to the following: (1) foreign
currency fluctuations relative to the U.S. dollar, (2) changes in
capital availability or cost, including interest rate fluctuations,
(3) the general political, economic and competitive conditions in
markets and countries where the Company has operations, including
uncertainties related to the expropriation of the Company's
operations in Venezuela,
disruptions in capital markets, disruptions in the supply chain,
competitive pricing pressures, inflation or deflation, and changes
in tax rates and laws, (4) consumer preferences for alternative
forms of packaging, (5) fluctuations in raw material and labor
costs, (6) availability of raw materials, (7) costs and
availability of energy, including natural gas prices, (8)
transportation costs, (9) the ability of the Company to raise
selling prices commensurate with energy and other cost increases,
(10) consolidation among competitors and customers, (11) the
ability of the Company to acquire businesses and expand plants,
integrate operations of acquired businesses and achieve expected
synergies, (12) unanticipated expenditures with respect to
environmental, safety and health laws, (13) the performance by
customers of their obligations under purchase agreements, (14) the
Company's ability to further develop its sales, marketing and
product development capabilities, and (15) the timing and
occurrence of events which are beyond the control of the Company,
including any expropriation of the Company's operations, floods and
other natural disasters, and events related to asbestos-related
claims. It is not possible to foresee or identify all such factors.
Any forward looking statements in this document are based on
certain assumptions and analyses made by the Company in light of
its experience and perception of historical trends, current
conditions, expected future developments, and other factors it
believes are appropriate in the circumstances. Forward looking
statements are not a guarantee of future performance and actual
results or developments may differ materially from expectations.
While the Company continually reviews trends and uncertainties
affecting the Company's results of operations and financial
condition, the Company does not assume any obligation to update or
supplement any particular forward looking statements contained in
this news release.
About O-I
Owens-Illinois, Inc. (NYSE: OI)
is the world's largest glass container manufacturer and preferred
partner for many of the world's leading food and beverage brands.
With revenues of $6.6 billion in
2010, the Company is headquartered in Perrysburg, Ohio, USA, and employs more than
24,000 people at 80 plants in 21 countries. O-I delivers safe,
effective and sustainable glass packaging solutions to a growing
global marketplace. For more information, visit
www.o-i.com.
SOURCE Owens-Illinois, Inc.