Libbey Inc. (LBY: Quote) said Friday that its wholly owned subsidiary Libbey Glass Inc. has priced $450 million aggregate principal amount of 6.875% senior secured notes due 2020 in a private placement at par.
The sale of the notes is expected to close on May 18.
The company said it and Libbey Glass plan to use the net proceeds from the sale of the notes, together with cash on hand and borrowings under the amended and restated senior secured credit agreement, to repurchase up to $320 million of the existing Libbey Glass 10% Senior Secured Notes due 2015 in a previously announced tender offer, redeem $40 million in aggregate principal amount of the existing notes that remain outstanding after consummation of the tender offer, pay related fees and expenses and contribute $79.7 million to the company's U.S. pension plans to fully fund its target obligations under ERISA.
by RTT Staff Writer
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