By Taylor Fox and Cristal Cody
New York, March 1 – Graphic Packaging International, LLC priced $800 million of senior secured notes in two parts on Monday, according to a news release.
The company sold $400 million of senior secured notes due 2024 at par with a coupon of 0.821% and $400 million of senior secured notes due 2026 at par with a coupon of 1.512% in a private offering.
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.
| Issuer: | Graphic Packaging International, LLC
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| Guarantors: | Graphic Packaging International Partners, LLC and Field Container Queretaro (USA), LLC and subsidiaries
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| Amount: | $800 million
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| Securities: | Senior secured notes
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| Dealers: | BofA Securities Inc. Mizuho Securities USA Inc. and Wells Fargo Securities LLC
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| Trade date: | March 1
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| Settlement date: | March 8
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| Rating: | S&P: BBB-
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| 2024 notes
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| Amount: | $400 million
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| Maturity: | April 15, 2024
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| Coupon: | 0.821%
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| Price: | Par
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| Yield: | 0.821%
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| Talk: | 85 bps area over Treasuries
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| 2026 notes
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| Amount: | $400 million
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| Maturity: | April 15, 2026
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| Coupon: | 1.512%
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| Price: | Par
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| Yield: | 1.512%
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| Talk: | 115 bps area over Treasuries
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