Graphic Packaging proposes $800 million of senior notes in two parts

By Cristal Cody

Chicago, March 1 – Graphic Packaging International LLC has proposed a new $800 million offering of senior secured notes in two parts (BBB-) that is being priced off the investment-grade desk, according to a press release.

The company has launched an offering for $400 million of senior secured notes due April 15, 2024.

Price talk for the tranche is for a spread in the 85 basis points area over Treasuries, according to a market source.

And, there is a second tranche for $400 million of senior secured notes due April 15, 2026.

Initial price talk is in the 115 bps area over Treasuries, according to the same source.

The notes will be guaranteed by Graphic Packaging International Partners, LLC and Field Container Queretaro (USA), LLC as well as future subsidiaries that guaranteed other senior credit facilities and existing senior notes.

The Rule 144A and Regulation S offering is being marketed by BofA Securities Inc. Mizuho Securities USA Inc. and Wells Fargo Securities LLC.

Proceeds will be used to repay in full all outstanding secured term loans under the company’s agreement dated Jan. 1, 2018 with Bank of America, NA as administrative agent. Additionally, the company will use the notes to repay a portion of the outstanding secured term loans under the company’s third amended and restated credit agreement date Jan. 1, 2018 with Bank of America again listed as administrative agent.

Graphic Packaging is an Atlanta-based consumer packaging manufacturer.

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