Graphic Packaging Announces Closing of $180 Million Senior Notes Offering
21 August 2009 - 12:22AM
PR Newswire (US)
MARIETTA, Ga., Aug. 20 /PRNewswire-FirstCall/ -- Graphic Packaging
International, Inc. ("Graphic Packaging"), a wholly-owned
subsidiary of Graphic Packaging Holding Company (NYSE:GPK),
announced today the completion of its previously announced private
offering of $180 million aggregate principal amount of its 9.50%
senior notes due 2017 (the "Senior Notes"). The Senior Notes are
guaranteed by Graphic Packaging Holding Company and Graphic
Packaging Corporation, as well as by certain of Graphic Packaging's
domestic subsidiaries who have guaranteed obligations under its
senior credit facilities, existing notes and certain other
indebtedness (the "Guarantors"). The Senior Notes were sold only to
qualified institutional buyers in accordance with Rule 144A of the
Securities Act of 1933, as amended, and outside the United States
to non-U.S. persons, in reliance on Regulation S. The gross
proceeds from the offering are approximately $185.4 million. The
proceeds from the offering will be used to redeem the remaining
approximately $180 million aggregate principal amount of Graphic
Packaging's 8.50% senior notes due 2011, to pay accrued interest on
the 2011 notes and to pay fees and expenses incurred in connection
with the offering and the redemption. "We are pleased with both the
execution and the pricing of this new bond issuance," said David W.
Scheible, Graphic Packaging's President and Chief Executive
Officer. "We were able to take advantage of favorable market
conditions and as a result, Graphic Packaging now has no
significant debt maturities until 2013." The Senior Notes have not
been registered under the Securities Act of 1933, as amended, or
the securities laws of any state and may not be offered or sold in
the United States absent registration or an applicable exemption
from the registration requirements under the Securities Act and any
applicable state securities laws. This press release does not
constitute an offer to sell or the solicitation of an offer to buy
the notes, nor shall it constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale is
unlawful. About Graphic Packaging International, Inc. Graphic
Packaging International, Inc., a subsidiary of Graphic Packaging
Holding Company (NYSE:GPK), headquartered in Marietta, Georgia, is
a leading provider of packaging solutions for a wide variety of
products to food, beverage and other consumer products companies.
The company is the largest global producer of folding cartons and
holds a leading market position in coated unbleached kraft
paperboard, coated-recycled boxboard and specialty bag packaging.
The company's customers include some of the most widely recognized
companies in the world. The company strives to provide our
customers with packaging solutions designed to deliver marketing
and performance benefits at a competitive cost by capitalizing on
our low cost paperboard mills and converting plants, proprietary
carton and packaging designs and commitment to customer service.
Additional information about Graphic Packaging, its business and
its products is available on the company's web site at
http://www.graphicpkg.com/. Forward Looking Statements Any
statements of the Company's expectations in this press release
constitute "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Such statements,
including but not limited to, statements regarding the senior note
offering and the use of proceeds therefrom, the redemption and
future debt maturities, are based on currently available
information and are subject to various risks and uncertainties that
could cause actual results to differ materially from the Company's
present expectations. These risks and uncertainties include, but
are not limited to, uncertainties relating to the execution of the
redemption, the Company's substantial amount of debt, inflation of
and volatility in raw material and energy costs, volatility in the
credit and securities markets, cutbacks in consumer spending that
could affect demand for the Company's products or actions taken by
our customers in response to the difficult economic environment,
continuing pressure for lower cost products, the Company's ability
to implement its business strategies, including productivity
initiatives and cost reduction plans, currency movements and other
risks of conducting business internationally, and the impact of
regulatory and litigation matters, including those that impact the
Company's ability to protect and use its intellectual property.
Undue reliance should not be placed on such forward-looking
statements, as such statements speak only as of the date on which
they are made and the Company undertakes no obligation to update
such statements. Additional information regarding these and other
risks is contained in the Company's periodic filings with the SEC.
DATASOURCE: Graphic Packaging International, Inc. CONTACT: Investor
Relations: Scott Wenhold, Vice President and Treasurer,
+1-770-644-3062, or Media: Cathy Worthy, 770-644-3515, both of
Graphic Packaging International, Inc.
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