Graham Packaging Completes Acquisition of Liquid Container, L.P.
"We are pleased to have completed the acquisition of Liquid Container and related financings in a timely manner," said Mark Burgess, CEO of Graham Packaging.
Sep 27 2010 --- Graham Packaging Company Inc. announced that its subsidiaries, Graham Packaging GP Acquisition LLC, and Graham Packaging LP Acquisition LLC, have completed the acquisition of Liquid Container, L.P. and its subsidiaries for $568.0 million.
In conjunction with the closing of the acquisition, Graham entered into a new $913.0 million aggregate principal amount term loan facility ("Term Loan D") under its existing senior secured credit agreement and completed its offering of $250.0 million senior unsecured notes. Approximately $563.0 million of the proceeds from the Term Loan D, along with cash on hand, were used to refinance in full the existing term loan B facility ("Term Loan B") under its senior secured credit agreement. A portion of the remaining proceeds from the Term Loan D and the proceeds from the new notes were used to finance the acquisition of Liquid Container and pay related fees and expenses. The Term Loan D bears an interest rate of LIBOR plus 425 basis points, with a LIBOR floor of 1.75%, and matures in September 2016. The senior unsecured notes bear a coupon of 8.25% and mature in October 2018.
"We are pleased to have completed the acquisition of Liquid Container and related financings in a timely manner," said Mark Burgess, CEO of Graham Packaging. "We are now focused on the integration of Liquid and are excited about unlocking the opportunities to grow both the top and bottom lines of our combined businesses. Additionally, the refinancing of our Term Loan B to 2016 leaves no meaningful debt maturities until 2014."
