Delaware, Ohio, USA, 01 November 2010 -- Greif, Inc. (NYSE: GEF, GEF.B) closed on a USD 1 billion of senior secured credit facilities on 29 October 2010. The facility was co-arranged by Banc of America Securities LLC, J.P. Morgan Securities Inc., KeyBank National Association, Citizens Bank of Pennsylvania, and Deutsche Bank Securities Inc. The new facilities replace an existing USD 700 million senior secured credit facility that was scheduled to expire in February 2012.
The agreement provides for a USD 750 million revolving credit facility and a USD 250 million term loan, both expiring 29 October 2015. Borrowings under these new credit facilities are subject to a pricing grid, initially priced all-in at LIBOR plus 200 basis points, and are subject to certain covenants.
"We are pleased with the positive reception and strong support of these credit facilities," said Donald S.Huml, Greif executive vice president and chief financial officer. "It is especially pleasing to note that the syndication was significantly oversubscribed. These new facilities reduce our borrowing costs, enhance financial flexibility and increase access to capital. We are well-positioned to continue executing our disciplined, long-term growth strategy.”
Greif is a world leader in industrial packaging products and services. The company produces steel, plastic, fiber, flexible and corrugated containers, and containerboard, and provides blending, filling, and packaging services for a wide range of industries. Greif also manages timber properties in North America. The company is strategically positioned in more than 50 countries to serve global and regional customers. Additional information is available at www.greif.com.