Graphic Packaging gets $250 million incremental, €210 million delayed-draw loans

By Wendy Van Sickle

Columbus, Ohio, July 27 – Graphic Packaging International, LLC obtained a $250 million senior secured Farm Credit System incremental term loan facility under a July 22 amendment with its lenders and a €210 million delayed-draw term loan the following day, according to an 8-K filing with the Securities and Exchange Commission.

The incremental term loan was fully drawn at closing and matures on July 22, 2028, and will be used to refinance previous investments that allow the company’s pulp and paper mills to generate power from energy conversion systems fueled by biomass and use the renewable power for their operations. CoBank, ACB is the lead arranger for the incremental facility.

Borrowings will bear interest at Libor plus a margin ranging from 150 basis points to 225 bps, based on consolidated leverage ratio. The initial margin is 175 bps.

Under the July 23 amendment that provided for the delayed-draw loan, the company also increased its existing euro-denominated revolver by €25 million.

The delayed-draw term loan is available in a single draw until May 12, 2022 and will mature on April 1, 2026.

Borrowings will bear interest at Euribor plus a margin ranging from 112.5 bps to 175 bps, based on consolidated leverage ratio. The initial rate is Euribor plus 175 bps. There is a ticking fee of 20 to 35 bps with an initial level of 35 bps.

Graphic Packaging is an Atlanta-based consumer packaging manufacturer.

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