Graham Packaging $100 million notes due 2008 to come to market in July

By Paul A. Harris

St. Louis Mo., May 31 - Graham Packaging Co., LP and its GPC Capital Corp. I subsidiary will bring $100 million senior subordinated notes due 2008, according to company senior vice president John Hamilton.

Hamilton told Prospect News Friday that the company has yet to determine whether or not the deal will be an add-on.

Hamilton also declined to specify the timing on the deal. However, according to a syndicate source, the deal is slated as July business.

Deutsche Bank Securities Inc. and Salomon Smith Barney are the joint bookrunners.

The bond deal as part of a financing package which includes an initial public offering of up to $287.5 million of common stock and $700 million of new bank debt. The plan is designed to reduce the amount and extend the maturities of Graham Packaging's long-term debt, reduce interest expense and improve financial flexibility.

Proceeds from the bond offering will be used to repurchase the York, Pa. plastic container company's $169 million ($155.7 million accreted value) senior discount notes and to repay bank debt.

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