Riverwood set for financial relief

- Last updated on GMT

Related tags: Finance

Riverwood International, the financially troubled US packaging
company, is to have its long-term debt rating reviewed by Moody's
Investors Service for a possible upgrade.

Riverwood International, the financially troubled US packaging company, is to have its long-term debt rating reviewed by Moody's Investors Service for a possible upgrade.

The rating action follows the company's announced plan to raise up to $350 million (€370m) in new equity through an initial public offering of its shares, as well as refinance a portion of its existing debt.

The transactions are expected to allow the company to reduce its total debt by about $250 million, and lower interest costs through the combined effect of lower debt and lower interest rates on the refinancing. In total, the company expects to raise approximately $1 billion.

The proceeds are slated to refinance $900 million in outstanding debts, and for related fees and expenses. Potential changes to operating and financial strategies as a result of the IPO will also be considered during the investigation.

Headquartered in Atlanta, Georgia, Riverwood International Corporation, is one of only two major worldwide producers of coated unbleached board used to make beverage carriers and food and consumer goods packaging.

Related topics: Processing & Packaging

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