ITEM 7.01. REGULATION FD DISCLOSURE.
On August 5, 2022, Owens Brockway Glass Container Inc. ("OBGC"), an indirect
wholly owned subsidiary of O-I Glass, Inc. (the "Company"), completed a sale and
leaseback transaction with 2900 Fruitland Avenue Investors LLC and 2901
Fruitland Avenue Investors LLC (collectively, the "Buyer"), pursuant to which
the Buyer purchased OBGC's plant in Vernon, California for a purchase price of
approximately $181 million.
In connection with this transaction, OBGC, as tenant, and the Company, as a
guarantor, agreed to lease the Vernon plant from Buyer for an initial term of 10
years. The lease terms require OBGC to make base rent payments of approximately
$7.2 million in the first year, gradually increasing to approximately $10.3
million in the tenth year. OBGC, in its discretion, has extension options 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. OBGC
also has termination options at no cost during the initial term, as early as the
fifth anniversary, subject to OBGC providing the required advance notice.
On August 8, 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 Section 18 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 August 8, 2022
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document and contained in Exhibit 101)
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