Graham Packaging's debt fell late last week after the company announced its operating income for the third quarter dropped by $9.7 million as compared to the same time period in 2005. As a result, the first lien was trading between 100.375-100.625 on Thursday, about a quarter of a point lower than Wednesday. "Yeah, that's been a little softer," said one dealer.
According to a filing with the Securities and Exchange Commission, operating income for the third quarter of 2006 was $40 million, compared to operating income of $49.7 million for the same time period last year. Operating income for the first three quarters of 2006 totaled $126.5 million, as compared to $138.5 million for the first three quarter of 2005. Net sales, however, were up increasing by $61 million for the nine months ending Sept. 30, as compared to the same time period last year.
Based in York, Pa., Graham Packaging designs, manufactures and sells plastic containers for the food and beverage markets. It currently operates 85 plants worldwide. The Blackstone Group holds 78.6% of the equity in Graham Packaging Holdings. MidOcean Capital Investors holds 4.1%. A group of management executives hold 2.3% and the family of Graham Packaging Founder Donald Graham holds 15%. Calls to John Hamilton, cfo, and a Blackstone official were not returned by press time.