Deutsche Bank last week launched syndication of a $700 million refinancing for Graham Packaging, part of a wider plan to extend the maturities of its long-term debt, reduce interest expense and improve flexibility. The new loan is split into a $550 million "B" loan and a $150 million revolver, both priced at LIBOR plus 2 1/2 %. The current institutional tranches are priced at LIBOR plus 3%. A banker said Graham also is issuing $100 million of senior subordinated notes via Deutsche Bank and Salomon Smith Barney.
Graham is a designer and manufacturer of plastic containers for the food, beverage and automotive lubricants market. A spokesman for Graham declined to comment until the quiet period has expired, and officials at the banks did not return calls.