Shares of Owens-Illinois (OI) fell sharply by 5.16% during intraday trading on Monday. The significant decline followed the company's announcement of a major debt financing move by its subsidiary.

Owens-Brockway Glass Container Inc., an indirect wholly owned subsidiary of O-I Glass, launched a private offering of $500 million in senior notes due 2033. The company stated that the net proceeds from this offering, combined with borrowings under its revolving credit facility and cash on hand, are earmarked to redeem all of its outstanding 6.625% senior notes due 2027.

The market's negative reaction likely reflects concerns over the company's increased debt load and the terms of the new financing, as it seeks to refinance existing obligations. The notes will be guaranteed by Owens-Illinois Group, Inc. and certain other subsidiaries.