Owens-Illinois Group, Inc. (the "Company") announced that OI European Group B.V. ("OI Europe"), an indirect wholly owned subsidiary of the Company, intends to offer, subject to market and other conditions, $310 million aggregate principal amount of its senior notes due 2023 in a private offering to eligible purchasers under Rule 144A and Regulation S of the U.S. Securities Act of 1933, as amended (the "Securities Act"). OI Europe's obligations under the senior notes will be guaranteed on a joint and several basis by the Company and certain U.S. domestic subsidiaries of the Company that are guarantors under the Company's credit agreement.
The Company expects to use the net proceeds from the private offering, together with cash from the Company's balance sheet, to repay all amounts outstanding under the Company's Euro-denominated term loan A facility under the credit agreement.