Exhibit 99.1
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CONTACT: |
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IR: Scott Wenhold 770-644-3062
Media: Cathy Worthy 770-644-3515 |
PRESS RELEASE:
Graphic Packaging Announces Closing of $180 Million Senior Notes Offering
Marietta, Georgia August 20, 2009 Graphic Packaging International, Inc. (Graphic
Packaging), a wholly-owned subsidiary of Graphic Packaging Holding Company (NYSE:GPK), announced
today the completion of its previously announced private offering of $180 million aggregate
principal amount of its 9.50% senior notes due 2017 (the Senior Notes). The Senior Notes are
guaranteed by Graphic Packaging Holding Company and Graphic Packaging Corporation, as well as by
certain of Graphic Packagings domestic subsidiaries who have guaranteed obligations under its
senior credit facilities, existing notes and certain other indebtedness (the Guarantors).
The Senior Notes were sold only to qualified institutional buyers in accordance with Rule 144A of
the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons, in
reliance on Regulation S.
The gross proceeds from the offering are approximately $185.4 million. The proceeds from the
offering will be used to redeem the remaining approximately $180 million aggregate principal amount
of Graphic Packagings 8.50% senior notes due 2011, to pay accrued interest on the 2011 notes and
to pay fees and expenses incurred in connection with the offering and the redemption.
We are pleased with both the execution and the pricing of this new bond issuance, said David W.
Scheible, Graphic Packagings President and Chief Executive Officer. We were able to take
advantage of favorable market conditions and, as a result, Graphic Packaging now has no significant
debt maturities until 2013.
The Senior Notes have not been registered under the Securities Act of 1933, as amended, or the
securities laws of any state and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements under the Securities Act
and any applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the
notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale is unlawful.
About Graphic Packaging International, Inc.
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company
(NYSE:GPK), headquartered in Marietta, Georgia, is a leading provider of packaging solutions for a
wide variety of products to food, beverage and other consumer products companies. The company is
the largest global producer of folding cartons and holds a leading market position in coated
unbleached kraft paperboard, coated-recycled boxboard and specialty bag packaging. The companys
customers include some of the most widely recognized companies in the world. The company strives to
provide our customers with packaging solutions designed to deliver marketing and performance
benefits at a competitive cost by capitalizing on our low cost paperboard mills and converting
plants, proprietary carton and packaging designs and commitment to customer service. Additional
information about Graphic Packaging, its business and its products is available on the companys
web site at www.graphicpkg.com.
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Forward Looking Statements
Any statements of the Companys expectations in this press release constitute forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements,
including but not limited to, statements regarding the senior note offering and the use of proceeds
therefrom, the redemption and future debt maturities, are based on currently available information
and are subject to various risks and uncertainties that could cause actual results to differ
materially from the Companys present expectations. These risks and uncertainties include, but are
not limited to, uncertainties relating to the execution of the redemption, the Companys
substantial amount of debt, inflation of and volatility in raw material and energy costs,
volatility in the credit and securities markets, cutbacks in consumer spending that could affect
demand for the Companys products or actions taken by our customers in response to the difficult
economic environment, continuing pressure for lower cost products, the Companys ability to
implement its business strategies, including productivity initiatives and cost reduction plans,
currency movements and other risks of conducting business internationally, and the impact of
regulatory and litigation matters, including those that impact the Companys ability to protect and
use its intellectual property. Undue reliance should not be placed on such forward-looking
statements, as such statements speak only as of the date on which they are made and the Company
undertakes no obligation to update such statements. Additional information regarding these and
other risks is contained in the Companys periodic filings with the SEC.