ITEM 7.01. REGULATION FD DISCLOSURE.
On May 9, 2022, O-I Canada Corp. ("O-I Canada"), an indirect wholly owned
subsidiary of O-I Glass, Inc. (the "Company"), completed a sale and leaseback
transaction with an affiliate of Crestpoint Real Estate Investments Ltd.
("Crestpoint"), pursuant to which such affiliate purchased O-I Canada's plant in
Brampton, Ontario, Canada for a purchase price of CAD $244 million
(approximately USD $191 million).
In connection with this transaction, O-I Canada, as tenant, and the Company, as
a guarantor, entered into a lease with Crestpoint's affiliate to lease the
Brampton, Ontario plant for an initial term of 10 years. The lease requires O-I
Canada to make base rent payments of approximately CAD $9.3 million (USD $7.3
million) in the first year, gradually increasing to approximately CAD $11.6
million (USD $9.1 million) in the tenth year. O-I Canada, in its discretion, has
the option to extend the lease for up to 13 additional years, via two options to
extend for an additional five years each along with a third option to extend for
an additional three years. O-I Canada also has the right to terminate the lease
during the initial term at no cost as early as May 9, 2029, subject to O-I
Canada providing the required advance notice. Crestpoint has placed CAD $5
million (approximately USD $4 million) in an escrow account for the benefit of
O-I Canada for the purposes of making future repairs to the property after
closing, which amount is separate from and in addition to the purchase price
paid pursuant to the acquisition.
On May 12, 2022, the Company issued a press release announcing the completion of
this sale and leaseback transaction. A copy of the press release is attached
hereto as Exhibit 99.1 and is incorporated herein by reference.
The information set forth in this Item 7.01, including Exhibit 99.1, is being
furnished and shall not be deemed "filed" for purposes of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that Section. The information in this Item 7.01, including
Exhibit 99.1, shall not be incorporated by reference into any filing of the
Company under the Securities Act of 1933, as amended, or the Exchange Act,
except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit No. Description
99.1 Press Release, dated May 12, 2022
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document and contained in Exhibit 101)
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