O-I Announces New Credit Agreement For Up To $2B

Owens-Illinois, Inc., 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. 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.