New Issue: Graphic Packaging sells $425 million 4¾% eight-year bullets at par

By Paul A. Harris

Portland, Ore., March 25 - Graphic Packaging International, Inc. priced a $425 million issue of eight-year senior notes (expected Ba3/confirmed BB+) at par to yield 4¾% on Monday, according to a syndicate source.

The yield printed at the tight end of the 4¾% to 4 7/8% yield talk.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and SunTrust Robison Humphrey Inc. were the joint bookrunners for the quick-to-market deal.

The Marietta, Ga., packaging manufacturer plans to use the proceeds, together with cash on hand, to fund the redemption of its senior notes due 2017 when they become callable on June 15, 2013, and in the near term to repay debt under its revolver.

Issuer:	Graphic Packaging International, Inc.
Amount:	$425 million
Maturity:	April 15, 2021
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., SunTrust Robison Humphrey Inc.
Co-managers:	PNC Capital Markets LLC, Rabobank, Regions
Coupon:	4¾%
Price:	Par
Yield:	4¾%
Spread:	335 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	March 25
Settlement date:	April 2
Ratings:	Moody's: Ba3 (expected)
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	4¾% to 4 7/8%
Marketing:	Quick to market

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