Fitch places Graham Packaging's 'B' issuer default rating, long-term debt on rating watch positive, affecting US$2.8B of outstanding debt
April 15, 2011
– Fitch Ratings has placed the 'B' Issuer Default Rating and the long-term debt issued by Graham Packaging Company, L.P.'s (Graham) and its subsidiary, GPC Capital Corp on Rating Watch Positive. A full list of rating actions follows at the end of this release. Approximately $2.8 billion of debt outstanding is affected by Fitch's action.
The rating actions follow Silgan Holdings Inc.'s announcement that it had entered into a definitive agreement to acquire Graham in a cash and stock transaction, representing a total enterprise value including net debt of approximately $4.1 billion. The transaction is subject to usual and customary closing conditions including shareholder and regulatory approval and is expected to close by the third quarter of 2011. The Positive Rating Watch will be resolved upon closing of the acquisition.
Fitch has placed the following ratings on Rating Watch Positive:
Graham and subsidiary GPC Capital Corp.:
--Senior secured revolving credit facility 'B+/RR3';
--Senior secured term loan 'B+/RR3';
--Senior unsecured notes 'CCC/RR6';
--Senior subordinated notes 'CCC/RR6'.
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