Graham Packaging Holdings Corp. blamed a fast-dropping stock market for the postponement of its initial public offering to an undecided future date.
York, Pa.-based Graham, parent of plastic-container subsidiary Graham Packaging Co. LP, temporarily scotched its IPO on July 23 after evaluating market conditions and the falling prices of packaging stocks, said spokesman Donald Sarvey. The company will renew the process when conditions improve, he said.
Graham had hoped to raise $250 million by issuing common stock, with the proceeds going to lower debt and pay off about $169 million in senior discount notes. After the IPO, 36.7 percent of Graham's ownership would have been traded on the public market.
No date had been set for the offering; the company was making presentations to investors, Sarvey said.
``We have no immediate need for the funds, and the company has plenty of liquidity,'' he said.
Graham's is one of many proposed IPOs postponed because of market conditions, Sarvey said.
Another packaging company, Philadelphia-based Crown Cork & Seal Co. Inc., plans to go through with its upcoming IPO sometime in August, to spin off PET container unit Constar International Inc., said spokeswoman Nicole Zampino.
Crown Cork hopes to raise about $150 million from the offering, with a stock price of $14-$16 a share, and another $350 million from the sale of senior subordinate notes and a term loan.