Graham Packaging Completes Acquisition of Liquid Container, L.P.

YORK, Pa., Sept. 23 - Graham Packaging Company Inc. (NYSE: GRM) today 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."

About Graham Packaging

Graham Packaging, based in York, Pennsylvania, is a worldwide leader in the design, manufacture and sale of technology-based, customized blow molded plastic containers for the branded food and beverage, household, personal care/specialty and automotive lubricants product categories. Graham Packaging has an extensive blue-chip customer base that includes many of the world's largest branded consumer products companies. It produces more than 20 billion container units annually at 83 plants in North America, Europe, South America, and China.

Graham Packaging is a leading U.S. supplier of plastic containers for hot-fill juice and juice drinks, sports drinks, drinkable yogurt and smoothies, nutritional supplements, wide-mouth food, dressings, condiments and beers; the leading global supplier of plastic containers for yogurt drinks; a leading supplier of plastic containers for liquid fabric care products, dish care products and hard-surface cleaners; and the leading supplier in the U.S., Canada and Brazil of one-quart/liter plastic motor oil containers.

To learn more about Graham Packaging, please visit the Company's Web site at Graham Packaging uses its Web site as a channel of distribution for material Company information. Financial and other material information regarding Graham Packaging is routinely posted on the Company's Web site and is readily accessible.


David Bullock

Chief Financial Officer

(717) 849-8500

Ian Lee

(717) 771-3220

SOURCE Graham Packaging Company Inc.

Web Site:

More from Mechanical Power Transmission

All Topics