Shearman & Sterling represented Citigroup Global Markets Limited in an offering of €185 million 8.500% Senior Secured Notes due 2019 (the “Notes”) by Glasstank B.V., an indirect subsidiary of Yioula Glassworks S.A. The net proceeds from the offering will be used to fund the redemption of Yioula Glassworks’ outstanding €140.0 million 9.0% Senior Notes due 2015 (the “Yioula Notes”) in full (including accrued interest to the date of redemption), to prepay in full term loan agreements with each of the International Finance Corporation and MKB Unionbank AD and for general corporate purposes. The firm also advised Citigroup Global Markets on the offering of the Yioula Notes in 2005.
Glasstank B.V. holds three operating subsidiaries that carry out the majority of the Yioula Group’s glass container and tableware manufacturing business. Its Bulgarian subsidiary, Drujba Glassworks, and its Romanian subsidiary, Stirom, are leading producers of glass containers, principally for the food and beverage industries, in the Balkan region and also make relatively significant sales into certain Western European countries.
The Shearman & Sterling team of lawyers in the firm’s London and Washington, DC offices included capital markets partners Apostolos Gkoutzinis and Jacques McChesney and associates Joji Ozawa, Ellen Shiels, Dimosthenis Papanikolaou and Rainer Adlhart. Counsel Gabrielle Wong advised on the finance aspects; partner Kristen Garry and associate Mary Jo Lang advised on the tax aspects; and counsel Mehran Massih advised on the environmental aspects. Partner David Dixter also provided assistance on the transaction.