Reynolds Group $5 billion of new debt to be led by Credit Suisse

By Sara Rosenberg

New York, June 22 - Reynolds Group Holdings Ltd. revealed in an 8-K filed with the Securities and Exchange Commission on Wednesday that Credit Suisse Securities (USA) LLC will be leading its $5 billion of new debt for the purchase of Graham Packaging Co. Inc.

The new debt is expected to come in the form of new term loans under the company's existing credit agreement, the issuance of notes or other debt.

Under the agreement, Reynolds is buying Graham for $25.50 per share, or a total of about $4.5 billion, including assumed debt.

The transaction is expected to close in the second half of this year, subject to customary regulatory approvals and closing conditions, including the approval of Graham's stockholders.

Pro forma for the acquisition, Reynolds Group's leverage ratio is expected to increase by 0.5 times.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products. Graham is a York, Pa.-based supplier of plastic containers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.