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Graham Packaging acquires Liquid Container

US-based Graham Packaging has announced that its subsidiaries, Graham Packaging GP Acquisition, and Graham Packaging LP Acquisition, have acquired the Liquid Container and its subsidiaries for $568m.

In conjunction with the closing of the acquisition, Graham entered into a new $913m aggregate principal amount term loan facility (Term Loan D) under its existing senior secured credit agreement and completed its offering of $250m senior unsecured notes.

Approximately $563m 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.

Graham Packaging CEO Mark Burgess said that they now focused on the integration of Liquid and unlocking the opportunities to grow both the top and bottom lines of their combined businesses.