Benzinga | Sep 10, 2021 07:36PM EDT

Graphic Packaging Plans Tax-Exempt Green Bond Offering

* Graphic Packaging Holding Company's (NYSE:GPK) subsidiary, Graphic Packaging International LLC, has agreed to offer $100 million of tax-exempt green bonds due 2061 with a mandatory purchase date of October 1, 2026.

* The offering is being executed through the Michigan Strategic Fund (MSF) Private Activity Bond Program.

* The Tax-Exempt Green Bonds will be issued at a price of $110.99 and will bear interest at an annual rate of 4.0%.

* The equivalent all-in yield will be 1.7%, and the interest income received by holders of the bonds will be exempt from federal and Michigan state income taxes but will be subject to the alternative minimum tax.

* Graphic Packaging expects to close the transaction on or about September 29, 2021.

* Price Action: GPK shares are trading lower by 0.35% at $20.08 on the last check Friday.