Reynolds Group is seeking to raise stand-alone financing for Graham Packaging Company and its subsidiaries. The financing is expected to be approximately $1.9 billion and is to comprise a new first lien term loan, a senior secured revolving credit facility and unsecured notes. The net proceeds from the Graham Packaging financing are expected to be used to repay existing debt of Reynolds Group.
Graham Packaging is currently a business segment of Reynolds Group. In connection with the Graham Packaging financing, all of the entities comprising Graham Packaging will be designated as “unrestricted subsidiaries” under the existing Reynolds Group borrowing arrangements and, as a result, will be released as guarantors and pledgers thereunder.
The Graham Packaging financing will enable Reynolds Group and Graham Packaging to better operate as stand-alone businesses, with each group able to focus on their core operations. It will also more readily allow for the legal separation of the two businesses at some future date if Graham Packaging ceases to be a subsidiary of Reynolds Group.
Graham Packaging designs, manufactures and sells food, beverage, household and automotive containers in North America and Europe.
Reynolds Group is a manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America.
