Greif, Inc. has entered into a new $1.1 billion senior secured credit facility that matures in 2021. The new credit facility will be structured as an $800 million multicurrency revolving credit facility and a $300 million delayed draw term loan.
The proceeds from the new revolving credit facility will be used to refinance the company’s existing senior secured revolving facility. The new term loan will be used to pay off the company’s $300 million 6.75% senior unsecured note at maturity on February 1, 2017.
Borrowings under the credit facility will bear an interest rate based on a tiered schedule tied to the company’s leverage ratio.
Concurrent with today’s announcement, the company has entered into a forward arrangement to fix the interest rate on $300 million of the company’s variable rate debt at 2.94% for five years.
As a result of lower interest rates, planned debt repayment and anticipated improvements in Greif’s leverage ratio, the company expects its 2017 annual interest expense to be roughly $12 million lower than in fiscal year 2016.
Greif is a global leader in industrial packaging products and services and is pursuing its vision to become the world’s best performing customer service company in industrial packaging.
