Reynolds Group's Term Loan For Graham Acquisition Rated 'BB-'; Corporate Rating Affirmed At 'B+', Off Watch Negative Jul 11

Standard & Poors, July 2011

Abstract
New Zealand-based packaging producer Reynolds Group Holdings Ltd. has agreed to acquire rigid plastic container producer Graham Packaging Co. Inc. in a debt-financed transaction for about $5 billion including assumed debt and related fees and expenses. We are affirming our 'B+' corporate credit rating on Reynolds and removing it from CreditWatch. We are also assigning issue and recovery ratings to Reynolds' proposed term loan, and affirming certain other issue-level ratings on Reynolds entities. The negative outlook on Reynolds indicates that we could lower the ratings if the company does not achieve targeted acquisition synergies, maintain adequate liquidity, and reduce debt leverage somewhat from very aggressive levels pro forma for the transaction. All our ratings on Graham entities (including the 'B'...

Companies mentioned in this report are:
- Reynolds Group Holdings Ltd.
- Pactiv Corp.
- Beverage Packaging Holdings (Luxembourg) II S.A.
- Beverage Packaging Holdings (Luxembourg) I S.A.
- Reynolds Group Issuer (Luxembourg) S.A.
- Reynolds Consumer Products Holdings Inc
- Reynolds Group Issuer Inc.
- Reynolds Group Holdings Inc.
- Sig Euro Holding AG & Co. KGAA
- Sig Austria Holding GMBH

Action: New Rating

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

- Reynolds Group Holdings Ltd.
- Pactiv Corp.
- Beverage Packaging Holdings (Luxembourg) II S.A.
- Beverage Packaging Holdings (Luxembourg) I S.A.
- Reynolds Group Issuer (Luxembourg) S.A.
- Reynolds Consumer Products Holdings Inc
- Reynolds Group Issuer Inc.
- Reynolds Group Holdings Inc.
- Sig Euro Holding AG & Co. KGAA
- Sig Austria Holding GMBH

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