O-I Glass Sells South American Ops to Vidrala for $343M

TL;DR

O-I Glass selling South America to Vidrala for $343M, focusing on NA/EU.

AI Summary

O-I Glass, Inc. announced on May 20, 2024, that it has entered into a definitive agreement to sell its remaining interest in its South American operations to Vidrala S.A. for approximately $343 million. This transaction is expected to close in the second half of 2024, subject to customary closing conditions.

Why It Matters

This divestiture allows O-I Glass to further streamline its business and focus on its core North American and European markets, potentially improving financial flexibility.

Risk Assessment

Risk Level: medium — The sale is subject to customary closing conditions, and the actual closing and final proceeds could be impacted by unforeseen circumstances.

Key Numbers

• $343 million — Sale Price (Proceeds from the sale of South American operations to Vidrala S.A.)

Key Players & Entities

• O-I Glass, Inc. (company) — Seller
• Vidrala S.A. (company) — Buyer
• $343 million (dollar_amount) — Sale price
• May 20, 2024 (date) — Announcement date
• second half of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $300 million — a private offering (the "Offering") of $300 million aggregate principal amount of its 7.375
• $300.0 million — 2025 (the "2025 OBGC Notes"), of which $300.0 million aggregate principal amount are outstand

Filing Documents

• tm2414914d2_8k.htm (8-K) — 36KB
• tm2414914d2_ex99-1.htm (EX-99.1) — 13KB
• tm2414914d2_8kimg001.jpg (GRAPHIC) — 2KB
• tm2414914d2_ex99-1img001.jpg (GRAPHIC) — 5KB
• 0001104659-24-063571.txt ( ) — 240KB
• oi-20240520.xsd (EX-101.SCH) — 3KB
• oi-20240520_lab.xml (EX-101.LAB) — 33KB
• oi-20240520_pre.xml (EX-101.PRE) — 22KB
• tm2414914d2_8k_htm.xml (XML) — 3KB

01. REGULATION

ITEM 7.01. REGULATION FD DISCLOSURE. Pricing of Notes Offering On May 20, 2024, O-I Glass, Inc. (the "Company") issued a press release (the "Notes Press Release") announcing that Owens-Brockway Glass Container Inc. ("OBGC"), an indirect wholly owned subsidiary of the Company, priced a private offering (the "Offering") of $300 million aggregate principal amount of its 7.375 % senior notes due 2032 (the "Notes") at par. The Offering is expected to close on May 30, 2024, subject to the satisfaction of customary closing conditions. A copy of the Notes Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. OBGC expects to use the net proceeds from the Offering, together with cash on hand, to redeem (the "Redemption") all of OBGC's outstanding 6.375% Senior Notes due 2025 (the "2025 OBGC Notes"), of which $300.0 million aggregate principal amount are outstanding as of the date of this report. OBGC issued a conditional notice of full redemption for the 2025 OBGC Notes following the pricing of the Offering. The Redemption is conditioned upon the completion of the Offering in an aggregate principal amount that is satisfactory to OBGC. The information contained in this Item 7.01 is for informational purposes only and shall not constitute a notice of redemption for the 2025 OBGC Notes or an offer to sell or the solicitation of an offer to buy the 2025 OBGC Notes, the Notes or the guarantees, nor shall there be any sale of the Notes and the guarantees in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The information contained in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed "filed" with the Securities and Exchange Commission (the "SEC") for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of th

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains "forward-looking" 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 that the Company's future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company's customer base, (6) the Company's ability to improve its glass melting technology, known as the modular advanced glass manufacturing asset ("MAGMA") program, and implement it within the timeframe expected, (7) unanticipated supply chain and operational disrupt

01. FINANCIAL

ITEM 9.01. FINANCIAL (d) Exhibits. Exhibit No. Description 99.1 Notes Press Release, dated May 20, 2024 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. O-I GLASS, INC. Date: May 20, 2024 By: /s/ Meena Dafesh Name: Meena Dafesh Title: Vice President and Global Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR