Junk: O-I Glass, Owens-Brockway on deck; Iron Mountain improves; funds lose $1.2 billion

By Paul A. Harris and Abigail W. Adams

Portland, Me., May 11 – The dollar-denominated junk bond primary put up a goose egg on Thursday.

However, O-I Glass, Inc. planned to price dollar-denominated and euro-denominated senior green notes on Friday morning.

Owens-Brockway Glass Container Inc. talked a $500 million tranche of eight-year notes (B2/B+) in the 7 3/8% area, inside of earlier guidance in the mid-to-high 7% area.

Official talk on the concurrent OI European Group BV €500 million tranche of five-year notes (Ba3/BB-) remained pending heading into the Thursday New York close. Initial guidance in the mid-to-high 6% area was announced earlier in the day.

Both issuers are indirect wholly owned subsidiaries of O-I Glass. However, the OI European Group euro-denominated notes come with guarantees that render them superior in credit quality to the Owens-Brockway dollar notes, a trader said.

It was a soft day in the secondary space, although the market continued to hold up well as it eyed the specter of a government default.

Iron Mountain Inc.’s new 7% senior notes due 2029 (Ba3/BB-) saw heavy volume with the notes slightly improved after a weak break.

Meanwhile, high-yield mutual funds and exchange-traded funds saw heavy outflows with $1.2 billion leaving the space in the week through Wednesday’s close, according to the Refinitiv Lipper Fund Flow report.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.