New Issue: Graphic Packaging prices $250 million 7 7/8% eight-year notes at par

By Paul A. Harris

St. Louis, Sept. 15 - Graphic Packaging International, Inc. priced a $250 million issue of eight-year senior notes (B3/B/) at par to yield 7 7/8% on Wednesday, according to an informed source.

The yield printed on top of the price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Goldman Sachs & Co. and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market issue.

The proceeds will be used to partially tender for the company's 9½% senior subordinated notes due 2013.

Graphic Packaging is a Marietta, Ga., provider of packaging solutions for food, beverage and other consumer products companies.

Issuer:	Graphic Packaging International, Inc.
Amount:	$250 million
Maturity:	Oct. 1, 2018
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Goldman Sachs & Co., Deutsche Bank Securities Inc.
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	557 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 1, 2014, then callable at 103.938, 101.969, par on and after Oct. 1, 2016
Equity clawback:	35% at 107.875 until Oct. 1, 2013
Change-of-control put:	101%
Trade date:	Sept. 15
Settlement date:	Sept. 29
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	SEC registered
Price talk:	7 7/8% area
Marketing:	Quick to market

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