In a press release issued on Wednesday, Delaware’s Greif, Inc. announced pricing for the previously announced offering of $500 million aggregate principal amount of 6.50% notes due in 2027.
According to the release, “The offering is expected to close on or about February 11, 2019, subject to customary closing conditions.” The offering is part of the financing of the merger consideration related to the previously announced acquisition of Paperboard Parent, Inc., the parent company of Caraustar Industries, Inc..
Greif intends to use the net proceeds from the offering of the Notes, together with borrowings under new senior secured credit facilities that it expects to enter into on the closing date, to fund the merger consideration of the Caraustar Acquisition, redeem the $250.0 million aggregate principal amount of its 7.75% senior unsecured notes due August 1, 2019, repay outstanding borrowings under its existing senior secured credit facilities and pay related fees and expenses.
The Caraustar Acquisition has not been completed as of Wednesday and is subject to customary closing conditions. The closing of the Notes offering is not conditioned upon the completion of the Caraustar Acquisition, but Greif will be required to redeem the Notes if the Caraustar Acquisition is not completed.
