Reynolds Group says leads on $5 billion of new debt to include HSBC

By Sara Rosenberg

New York, July 5 - Reynolds Group Holdings Ltd.'s $5 billion of new debt will be led by HSBC Securities (USA) Inc. in addition to previously announced Credit Suisse Securities (USA) LLC, according to a PREM14C filed late Friday with the Securities and Exchange Commission.

As was already reported, 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.

Proceeds will be used to fund the purchase of Graham Packaging Co. Inc. 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.

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