Jun 07, 2005. /Lesprom Network/. Packaging company Rock-Tenn Co. said on Monday it has entered into a $700 million Senior Credit Facility to finance its acquisition of Gulf States Paper Corp.'s paperboard and packaging business. The facility is secured by the assets acquired and Rock-Tenn's inventory and certain intangible assets and is pre-payable at any time, the Norcross, Georgia-based company said. In April, Rock-Tenn said it agreed to buy Gulf States' paperboard and packaging business for $540 million, to make it the No. 2 folding carton producer in North America. The deal was completed on Monday. The company expects to realize total annualized synergies of $20 million from the transaction and also to generate a significant amount of free cash flow to use primarily to pay down debt. Rock-Tenn has targeted a debt reduction goal of $180 million by September 2007.