The net proceeds from the Graham Packaging Financing are expected to be used to repay existing debt of Reynolds Group
Reynolds Group is seeking to raise stand-alone financing for Graham Packaging Company, Inc. and its subsidiaries (collectively, “Graham Packaging”). The financing is expected to be approximately $1.9 billion, to be comprised of a mix of new first lien term loan, a senior secured revolving credit facility and unsecured notes (collectively, the “Graham Packaging Financing”). The net proceeds from the Graham Packaging Financing are expected to be used to repay existing debt of Reynolds Group.
Graham Packaging is currently a business segment of Reynolds Group. In connection with the Graham Packaging 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 Graham Packaging Financing will 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. It will also 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.
Graham Packaging is a leader in the design, manufacture and sale of custom, value-added and high performance food, beverage, household and automotive containers in North America and Europe.
The notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws and therefore may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Source: Company Press Release