Graphic Packaging Announces Pricing of Senior Notes Offering
Graphic Packaging International, Inc. a wholly-owned subsidiary of Graphic Packaging Holding Company announced that it has entered into an agreement to sell $300 million aggregate principal amount of its senior unsecured notes due 2024 in a registered public offering. The Senior Notes will bear interest at an annual rate of 4.125% and will be issued at par. Graphic Packaging expects to close the offering on August 11, 2016, subject to the satisfaction of customary closing conditions.
The Senior Notes will be guaranteed by Graphic Packaging Holding Company as well as by certain of Graphic Packaging's material domestic subsidiaries which have guaranteed obligations under its senior credit facilities, its existing senior notes due 2021 and its existing senior notes due 2022.
Graphic Packaging estimates that the net proceeds from this offering will be approximately $295.35 million, after deducting the underwriters' discount. The net proceeds from the offering will be used to repay a portion of the outstanding borrowings under the U.S. Dollar portion of Graphic Packaging's senior secured revolving credit facility under its senior credit facility, and to pay fees and expenses incurred in connection therewith.
