Form: 8-K12B

Notification that a class of securities of successor issuer is deemed to be registered pursuant to Section 12(b)

March 10, 2008

Documents

 

Exhibit 99.6
 
We are providing supplemental pro forma financial information of the combined company that includes information relating to the financing of the combination of Graphic Packaging Corporation and Altivity Packaging, LLC.
PRO FORMA SOURCES AND USES
 
                     
($ in millions)  
As of 12/31/07(1)  
                 
Sources   Amount     Uses   Amount  
   
Cash on Hand
   $ 52.6     Altivity Equity Consideration   $ 686.1  
Revolver ($400.0)
     0.0     Refinancing or Altivity Revolver(2)     10.0  
New Term Loan C
     1,200.0     Refinancing of Altivity First Lien Term Loan     812.6  
New Graphic Common Stock(1)
    686.1     Refinancing of Altivity Second Lien Term Loan     330.0  
 
           Refinancing of Graphic Revolver     11.0  
 
           Transaction Fees and Expenses     89.0  
         
Total Sources
   $ 1,938.7     Total Uses   $ 1,938.7  
         
(1)   Unaudited
 
(2)   Value based on July 9, 2007 Merger Agreement
 
(3)   Revolver balances are as of 12/31/07
PRO FORMA CAPITALIZATION
 
                         
($ in millions)  
PRO FORMA CAPITALIZATION  
    PF Amount     % of Total     PF EBITDA  
    12/31/2007     Capitalization     Multiple  
   
Revolver ($400.0)
     0.0       0.00 %     0.00x  
Graphic Existing Term Loan B
     1,010.0       26.55 %     1.59x  
New Term Loan C
     1,200.0       31.54 %     1.88x  
Other Long Term Debt
     1.0       0.03 %     0.00x  
Short Term Debt
     6.6       0.17 %     0.01x  
 
                  
Total Senior Secured Debt
     2,217.6       58.29 %     3.48x  
 
                        
8.50 % Senior Unsecured Notes
     425.0       11.17 %     0.67x  
 
                  
Total Senior Debt
     2,642.6       69.46 %     4.15x  
 
                        
9.50% Senior Subordinated Notes
     425.0       11.17 %     0.67x  
 
                  
Total Debt
     3,067.6       80.63 %     4.82x  
 
                        
Book Equity
     736.9       19.37 %     1.16x  
 
                  
Total Book Capitalization
   $ 3,804.5       100.00 %     5.97x  
 
                  
 
                        
PF FY 2007 Credit Agreement EBITDA(1)(2)
  $ 637.1                  
   
(1)   Includes $20.0 MM pro forma synergy adjustment to be realized within the first 12-months post-closing
 
(2)   Unaudited
SUMMARY PRO FORMA FINANCIAL INFORMATION
 
         
($ in millions)  
SUMMARY PRO FORMA FINANCIALS AND CREDIT STATISTICS(1)  
    Pro Forma  
    12/31/2007  
Consolidated Net Sales
   $ 4,418.0  
PF Consolidated Credit Agreement EBITDA
     637.1  
Consolidated CAPEX
     169.2  
Interest Expense
     248.0  
Senior Secured Debt
     2,217.6  
Total Debt
     3,067.6  
Senior Secured Debt/EBITDA
     3.48 x
Funded Debt/EBITDA
     4.82 x
CA EBITDA/Cash Interest
     2.57 x
(CA EBITDA — CAPEX)/Cash interest
     1.89 x
   
(1)   Unaudited

 

 

COLLATERAL SUMMARY
 
         
($ in millions)
PROFORMA COLLATERAL OVERVIEW AS OF 12/31/07(1)  
    Book  
Asset   Value  
 
Accounts Receivable, Net
   $ 394.3  
Inventory
     566.5  
PP&E net of Depreciation
     2,169.0  
 
      
Total
   $ 3,129.8  
 
        
Senior Secured Debt
   $ 2,217.6  
Senior Debt
   $ 2,642.6  
Funded Debt
   $ 3,067.6  
 
        
Senior Secured Debt Asset Coverage
     1.4 x
Funded Debt Asset Coverage
     1.0 x
 
(1)   Unaudited

 

The following table illustrates the breadth of New Graphic’s pro forma business units with a breakdown of revenue and EBITDA by operating division. Together, these four businesses comprise a stable and diversified portfolio of packaging businesses.
                 
    2006   2007
New Graphic (1)
                
Altivity Revenues
   $ 1,983     $ 2,040  
Graphic Revenues
     2,322       2,421  
Altivity EBITDA
     85.0       175.8  
% Margin
   NM     8.6 %
Graphic EBITDA
   $ 293.3     $ 347.0  
% Margin
     12.6 %     14.3 %
Paperboard Packaging (2)
                
Altivity Revenues
   $ 1,266     $ 1,316  
Graphic Revenues
     2,227       2,326  
Containboard Multi-wall Bags (2)
                
Altivity Revenues
     472.2       473.3  
Graphic Revenues
     94.6       95.3  
Specialty Packaging (2)
                
Altivity Revenues
     219.6       226.5  
(1)   Pro forma revenues excludes $43.4 MM of inter-company eliminations.
 
(2)   Business unit data excludes corporate overhead allocations

 

PRO FORMA HISTORICAL FINANCIAL SUMMARY
 
                                       
($ in millions)    
NEW GRAPHIC PRO FORMA SUMMARY HISTORICAL FINANCIALS            
             
    Historical   Pro Forma    
      12/31/2005(1)     12/31/2006     12/31/2007(2)       12/31/2007(2)    
Financial Summary:
                                      
Graphic Net Sales
     $ 2,294.3     $ 2,321.7     $ 2,421.2       $ 2,421.2    
Altivity Net Sales
       1,951.0       1,982.6       2,040.2         2,040.2    
(+) Intercompany Eliminations
                                 (43.3 )  
 
                                    
Consolidated Net Sales
     $ 4,245.3     $ 4,304.3     $ 4,461.4       $ 4,418.0    
Growth (%)
    NA     1.4 %     3.6 %            
 
                                      
Graphic EBITDA
       293.2       293.3       347.0         347.0    
Altivity EBITDA
       124.9       85.0       175.8 (5)       175.8 (5)    
                 
Consolidated EBITDA (3)
       418.1       378.3       522.8         522.8    
                 
Margin (%)
       9.8 %     8.8 %     11.7 %       11.8 %  
 
                                      
Adjustments (4):
                                      
(+) Graphic Credit Agreement Adjustments
                       26.9         26.9    
(+) Altivity Credit Agreement Adjustments
                       67.3         67.3    
 
                                  
Total Adjustments
                       94.2         94.2    
 
                                      
Graphic Credit Agreement EBITDA
                       373.9         373.9    
Altivity Credit Agreement EBITDA
                       243.2         243.2 (5)  
 
                                  
Consolidated Credit Agreement EBITDA (6)
                       617.1         617.1    
 
                                      
PF Synergy Adjustment
                                 20.0    
 
                                    
PF Consolidated Credit Agreement EBITDA
                                 637.1    
 
                                      
Capital Expenditures:
                                      
Graphic Capital Expenditures
                                 95.9    
Altivity Capital Expenditures
                                 73.3    
 
                                    
Consolidated CAPEX
                                 169.2    
 
                                      
Interest Expense
                                 248.0    
 
                                      
Senior Secured Debt
                                 2,217.6    
Senior Debt
                                 2,642.6    
Total Debt
                                 3,067.6    
Book Equity
                                 736.9    
 
                                      
Summary Credit Statistics:
                                      
Senior Secured Debt/ EBITDA
                                 3.48x    
Senior Debt/EBITDA
                                 4.15X    
Funded Debt/EBITDA
                                 4.82x    
EBITDA/Cash Interest
                                 2.57x    
(EBITDA — CAPEX) /Cash Interest
                                 1.89x    
   
(1)   Altivity 12/31/05 performance based on Calendar Year performance for Smurfit Stone Consumer Packaging Division and FY 4/30/2005 performance for Field Container Corporation
 
(2)   Unaudited
 
(3)   EBITDA is defined as net income before interest expense, income tax expense and depreciation and amortization.
 
(4)   Adjustments in accordance with Graphic’s credit agreement.
 
(5)   Includes one time non-recurring expenses of $30.4 million.
 
(6)   Credit Agreement EBITDA is defined in the Credit Agreement as consolidated net income before consolidated interest expense, non-cash expenses and charges, total income tax expense, depreciation expense, expense associated with amortization of intangibles and other assets, non-cash provisions for reserves for discontinued operations, extraordinary, unusual or non-recurring gains or losses or charges or credits, gain or loss associated with sale or write-down of assets not in the ordinary course of business, and any income or loss accounted for by the equity method of accounting.
The amounts included in the pro forma historical financial summary related to Altivity were prepared by the management of Altivity and have not been audited.
This pro form historical summary includes items that are not in conformity with GAAP or the rules and regulations of the Securities and Exchange Commission.