Graham Packaging $725 million two-tranche note offering to launch via roadshow Monday

By Paul A. Harris

St. Louis, Sept. 13 - Graham Packaging Holdings Co. will hold a roadshow Monday through Sept. 28 for a $725 million two-tranche offering of high-yield notes, according to market sources.

The company plans to sell $350 million of eight-year senior notes, which are non-callable for four years, and $375 million of 10-year senior subordinated notes, which are non-callable for five years.

Citigroup, Deutsche Bank Securities and Goldman Sachs & Co. will be joint bookrunners for the Rule 144A offerings.

The company will also obtain new bank debt.

Proceeds will be used to repay debt, to finance Graham Packaging's $1.2 billion acquisition of Owens-Illinois' blow-molded plastic container business and to fund the tender offers for its $250 million of 8¾% senior subordinated notes due 2008, its $75 million of floating-rate subordinated term securities due 2008 and $169 million of 10¾% senior discount notes due 2009.

York, Pa.-based Graham Packaging designs, manufactures and sells technology-based, customized blow-molded plastic containers.

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