Hart seeks to raise stakes with another $US4 billion
New Zealand's richest man talks to bankers in New York to raise $US4 billion, but ratings agencies are getting jittery.
New Zealand’s richest man Graeme Hart is to meet with his bankers on July 11 in New York to raise $US4 billion in debt to finance his acquisition of plastic container maker Graham Packaging Company.
Mr Hart’s takeover vehicle Reynolds Group Holdings said in a statement it was seeking to activate $US2 billion in senior loans from existing credit agreements, raise another $US1.5 billion in senior debt and a further $US500 million in unsecured debt.
Reynolds said they expected the takeover would realise $US75 million in operational cost savings due to reduced administrative costs, procurement savings and logistical efficiencies.
Reynolds beat out rival Silgan Holdings with a $US1.68 billion cash offer for Graham, and the new debt-raising will put Reynold’s total indebtedness at $US16.6 billion.
Standard & Poors and Moody's have Reynold's debt - rated junk - on negative watch.
Mr Hart has been busy with acquisitions this year.
Reynolds bought food packaging maker Dopoci Inc for $US398.1 million in May, and Mr Hart’s Rank Group took over car parts marker UCI in January.
Rank Group met bankers earlier this week to raise $US730 million to fund the $US900 million acquisition of car parks maker Honeywell Consumer Products Group.
NBR staff
Fri, 08 Jul 2011
Fri, 08 Jul 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Hart seeks to raise stakes with another $US4 billion
15762