International glass manufacturer and seller Owens-Illinois Group Inc. (OI) announced that its wholly owned subsidiary, OI European Group B.V., intends to offer €500 million ($644.5 million) aggregate principal amount of Senior Notes due 2020 in a private offering, which is subject to market and other conditions.
OI European Group B.V. plans to utilize the net proceeds of the issue to repay borrowings of Owens-Illinois made under the revolving credit facility and for general corporate purposes.
During the most recent quarter, Owens-Illinois issued $690 million of 3% exchangeable senior notes due in 2015. The proceeds were used to repay $450 million 8.25% senior notes due in 2013 and to repurchase 1.6 million shares of company stock for $55 million. The proceeds were also used to fund Owens-IIIinois’s international investment of $132 million in a plant in China and a joint venture in Southeast Asia, which was completed in July 2010.
As of June 30, 2010, Owens-Illinois reported total debt of $3.501 billion, and the net debt of the company was $2.819 billion, down $128 million from the first quarter of 2010. The company has $725 million in its global revolving credit facility, which does not mature until June 2012.
As of June 30, 2010, the debt-to-capitalization ratio of the company was nearly flat at 69.5% compared with 70% as of March 30, 2010 and down from 72% as of June 30, 2009.
Interest expenses of Owens-Illinois at the end of second-quarter 2010 were $60 million versus $57.9 million at the end of the year-ago quarter. With this note offering, the debt level of the company will rise and it will also have to incur higher interest expense to service the debt.
Owens-Illinois posted adjusted earnings of 90 cents per share in the second quarter of 2010, compared with 94 cents in the year-ago period. The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 currently stand at 92 cents per share, $2.89 per share and $3.42 per share, respectively.
Owens-Illinois currently retains a Zacks #5 Rank (short-term Strong Sell rating). We also maintain a long-term Neutral rating on the stock.
Based in Perrysburg, Ohio, Owens-Illinois Inc., through its subsidiaries, manufactures and sells glass containers primarily in Europe, North America, South America, and the Asia Pacific.
OWENS-ILLINOIS (OI): Free Stock Analysis Report
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During the most recent quarter, Owens-Illinois issued $690 million of 3% exchangeable senior notes due in 2015. The proceeds were used to repay $450 million 8.25% senior notes due in 2013 and to repurchase 1.6 million shares of company stock for $55 million. The proceeds were also used to fund Owens-IIIinois’s international investment of $132 million in a plant in China and a joint venture in Southeast Asia, which was completed in July 2010.
As of June 30, 2010, Owens-Illinois reported total debt of $3.501 billion, and the net debt of the company was $2.819 billion, down $128 million from the first quarter of 2010. The company has $725 million in its global revolving credit facility, which does not mature until June 2012.
As of June 30, 2010, the debt-to-capitalization ratio of the company was nearly flat at 69.5% compared with 70% as of March 30, 2010 and down from 72% as of June 30, 2009.
Interest expenses of Owens-Illinois at the end of second-quarter 2010 were $60 million versus $57.9 million at the end of the year-ago quarter. With this note offering, the debt level of the company will rise and it will also have to incur higher interest expense to service the debt.
Owens-Illinois posted adjusted earnings of 90 cents per share in the second quarter of 2010, compared with 94 cents in the year-ago period. The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 currently stand at 92 cents per share, $2.89 per share and $3.42 per share, respectively.
Owens-Illinois currently retains a Zacks #5 Rank (short-term Strong Sell rating). We also maintain a long-term Neutral rating on the stock.
Based in Perrysburg, Ohio, Owens-Illinois Inc., through its subsidiaries, manufactures and sells glass containers primarily in Europe, North America, South America, and the Asia Pacific.
OWENS-ILLINOIS (OI): Free Stock Analysis Report
Zacks Investment Research
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