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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.

NBR staff
Fri, 08 Jul 2011

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
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Hart seeks to raise stakes with another $US4 billion
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