Delaware, Ohio, USA, 19 February 2009 – Greif, Inc. (NYSE: GEF, GEF.B) today announced the closing of USD 700 million of senior secured credit facilities co-arranged by Banc of America Securities LLC and J.P. Morgan Securities Inc. The new facilities replace an existing USD 450 million revolving credit facility that was scheduled to expire in March 2010.
The agreement provides for a revolving credit facility of USD 500 million and a USD 200 million term loan, both expiring February 2012, with the ability to increase the facilities by up to USD 200 million. Borrowings under these new credit facilities are subject to a pricing grid, initially priced all-in at LIBOR plus 300 basis points, and are subject to certain covenants.
"We are pleased with the 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 oversubscribed. These new facilities enhance our financial flexibility and access to capital. We are well-positioned to address the challenges in the global economy and to continue to execute our disciplined growth strategy.”
Greif is a world leader in industrial packaging products and services. The company produces steel, plastic, fiber, corrugated and multiwall containers, protective packaging, 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 47 countries to serve global and regional customers. In 2008, the company reported USD 3.8 billion in net sales. Additional information is on the company's Web site at www.greif.com.