Moody's rates Graphic Packaging notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Graphic Packaging International, LLC's proposed senior unsecured notes.

“The company's unsecured notes are rated Ba2, one notch below the Ba1 corporate family rating, due to their effective subordination to the sizable senior secured debt. The proposed notes, as well as the existing 2028 and 2027 notes and senior secured credit facilities, are guaranteed by Graphic Packaging International Partners, LLC, a holding company that owns the obligor and operating subsidiaries. The existing senior unsecured notes due in 2021, 2022 and 2024 are guaranteed by Graphic Packaging Holding Co., another holding company. Moody's views the guarantees as similar and rates both new and existing unsecured notes the same,” Moody’s said in a press release.

Proceeds will be used to repay revolver borrowings that funded the second $250 million acquisition of International Paper's minority partnership interest and for general corporate purposes.

“All other ratings remain unchanged,” Moody’s said.

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