New Issue: Graham Packaging sells $253.4 million 8¼% seven-year notes at 98.667 to yield 8½%

By Paul A. Harris

St. Louis, Nov. 18 - Graham Packaging Co. LP and GPC Capital Corp. priced a $253,376,000 issue of 8¼% seven-year senior notes (Caa1/CCC+/) at 98.667 to yield 8½% on Wednesday, according to an informed source.

The yield printed atop price talk.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. were joint bookrunners for the quick-to-market issue.

Proceeds, along with cash on hand, will be used by the York, Pa.-based molded plastic container manufacturer to redeem in full its existing 8½% senior unsecured notes due 2012.

Issuer:	Graham Packaging Co. LP/GPC Capital Corp.
Face amount:	$253,376,000
Proceeds:	$249,998,000 (approximate)
Maturity:	Jan. 1, 2017
Security description:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co.
Coupon:	8¼%
Price:	98.667
Yield:	8½%
Spread:	560 bps
Call features:	Make-whole call at Treasuries plus 50 bps for first four years, then callable at a premium
Equity clawback:	40% at 108.25 until Jan. 1, 2013
Trade date:	Nov. 18
Settlement date:	Nov. 24
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A
Price talk:	8½% area

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