Graham Packaging plans $1.9 billion in new bank debt, unsecured notes

By Sara Rosenberg

New York, July 9 – Graham Packaging Co. Inc. is planning $1.9 billion in stand-alone financing consisting of a mix of a new first-lien term loan, a senior secured revolving credit facility and unsecured notes, according to a news release.

Proceeds will be used to repay existing debt at parent company Reynolds Group Holdings Ltd.

In connection with the financing, all of the entities comprising Graham Packaging will be designated as unrestricted subsidiaries under the existing Reynolds Group borrowing arrangements and, as a result, will be released as guarantors and pledgers thereunder.

The financing is expected to enable each of Reynolds Group and Graham Packaging to better operate as stand-alone businesses, with each group able to focus on their core operations, and more readily allow for the legal separation of the two businesses at some future date if Graham Packaging ceases to be a subsidiary of Reynolds Group, the release said.

Graham Packaging is a designer, manufacturer and seller of food, beverage, household and automotive containers. Reynolds Group is an Auckland, New Zealand-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons.

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