Business News

Graham Finalizes Previously Announced Extension of Credit Agreement

Monday 01. June 2009 - Graham Packaging Holdings Company today announced that its wholly owned subsidiary, Graham Packaging Company, L.P. ("Graham" or the "Company"), has executed an amendment to its Credit Agreement with certain of its lenders to extend the maturity of $1.2 billion of its $1.8 billion in term loans from October 7, 2011, to April 5, 2014.

Graham’s borrowing costs on the extended term loans will be 4.25% margin over LIBOR, and a “LIBOR floor” of 2.50% will apply to the extended term loans. The maturity date and interest margins with respect to those term loans held by lenders that did not consent to extend the maturity of their term loans will remain unchanged.

In addition, pursuant to the amendment, certain revolving credit lenders have agreed to extend the maturity of $112.8 million out of $250.0 million in revolving credit commitments from October 7, 2010, to October 1, 2013. The LIBOR margin with respect to revolving credit loans made pursuant to such extended revolving credit commitments will be 4.25%, and a “LIBOR floor” of 2.50% will apply to such revolving credit loans. The commitment fee payable with respect to the undrawn extended revolving credit commitments will be increased to 0.75%.

Mark Burgess, CEO of Graham, commented on the credit agreement extension, “I am pleased that we have been able to take advantage of our continued strong operational performance to extend our credit agreement. We received excellent support with over 75% of existing lenders participating in the extension. We felt it was in the best interest of our company to limit the risk of future refinancing, and this extension pushes out the maturity of approximately 64% of our debt until 2014.”