v3.25.3
DEBT
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Short-Term Debt and Current Portion of Long-Term Debt is comprised of the following:

In millionsSeptember 30, 2025December 31, 2024
Short-Term Borrowings
$21 $18 
Current Portion of Finance Leases
6 7 
Current Portion of Long-Term Debt419 14 
Total
$446 $39 
Long-Term Debt is comprised of the following:

In millionsSeptember 30, 2025December 31, 2024
Senior Notes with interest payable semi-annually at 1.512%, effective rate of 1.51%, payable in 2026(a)
$400 $400 
Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.77%, payable in 2027(a)
300 300 
Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.52%, payable in 2028(a)
450 450 
Senior Notes with interest payable semi-annually at 3.50%, effective rate of 3.52%, payable in 2029(a)
350 350 
Senior Notes (€290 million) with interest payable semi-annually at 2.625%, effective rate of 2.64%, payable in 2029(a)
341 300 
Senior Notes with interest payable semi-annually at 3.75%, effective rate of 3.78%, payable in 2030(a)
400 400 
Senior Notes with interest payable semi-annually at 6.375% effective rate of 6.45%, payable in 2032(a)
500 500 
Green Bonds, net of unamortized premium with interest payable at 4.00%, effective rate of 1.71%, payable in 2026(a)
102 104 
Green Bonds, net of unamortized premium with interest payable at 5.00%, effective rate of 4.66%, payable in 2030(a)
100 — 
Senior Secured Term Loan A-2 Facility with interest payable quarterly at 2.67%, effective rate of 2.68% payable in 2028(a)
425 425 
Senior Secured Term Loan A-3 Facility with interest payable monthly payable at floating rates (5.35% at September 30, 2025), effective rate of 5.35%, payable in 2028(a)
250 250 
Senior Secured Term Loan A-5 Facility with interest payable monthly payable at floating rates (5.32% at September 30, 2025), effective rate of 5.33%, payable in 2029(a)
50 50 
Senior Secured Term Loan A-6 Facility with interest payable monthly payable at floating rates (5.37% at September 30, 2025), effective rate of 5.38%, payable in 2029(a)
200 200 
Senior Secured Term Loan A-1 Facilities with interest payable at various dates at floating rates (6.13% at September 30, 2025) payable through 2029(a)
488 497 
Senior Secured Term Loan Facility (€200 million) with interest payable at various dates at floating rates (3.49% at September 30, 2025) payable through 2029(a)
235 207 
Senior Secured Revolving Credit Facilities with interest payable at floating rates (5.93% at September 30, 2025) payable in 2029(a)(b)
1,185 610 
Finance Leases142 145 
Other2 3 
Total Long-Term Debt Including Current Portion5,920 5,191 
Less: Current Portion425 21 
Total Long-term Debt Excluding Current Portion5,495 5,170 
Less: Unamortized Debt Deferred Issuance Costs23 25 
Total Long-Term Debt$5,472 $5,145 
(a) Guaranteed by Graphic Packaging International Partners, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company ("GPIP") and certain domestic subsidiaries.
(b) The year-to-date weighted average effective interest rates for the Company's Senior Secured Revolving Credit Facilities were 5.89% and 6.65% as of September 30, 2025 and December 31, 2024, respectively.
2025

On May 29, 2025, the Company, through its subsidiary Graphic Packaging International, LLC ("GPIL"), completed a $100 million tax-exempt green bond transaction through Mission Economic Development Corporation's Private Activity Bond Program (the "Green Bonds"). The Green Bonds are special limited obligations of the Mission Economic Development Corporation (the "Issuer") payable from and secured by a pledge of payments to be made by GPIL under a loan agreement between the Issuer and GPIL. The Green Bonds mature and must be redeemed by the Company in 2030, but can be reissued under certain conditions until 2064. The Green Bonds were issued at a price of 101.904% and bear interest at an annual rate of 5.0%. The equivalent yield is 4.57%. The net proceeds of $99 million were used to fund a portion of GPIL's spend on construction of the new recycled paperboard manufacturing facility located in Waco, Texas ("The Project"). The bonds have been designated as Green Bonds because: (i) the proceeds were used to finance a solid waste disposal/recycling facility; and (ii) the Project will promote environmental sustainability through expected reductions in the intensity of greenhouse gas emissions, energy usage and water usage.

At September 30, 2025, the Company and its U.S. and international subsidiaries had the following commitments, amounts outstanding and amounts available under revolving credit facilities:

In millionsTotal CommitmentsTotal Outstanding
Total Available(a)
Senior Secured Domestic Revolving Credit Facility$1,900 $1,094 $804 
Senior Secured International Revolving Credit Facility211 91 120 
Other International Facilities54 23 31 
Total$2,165 $1,208 $955 
(a) In accordance with its debt agreements, the Company's availability under its revolving credit facilities has been reduced by the amount of standby letters of credit issued of $2 million as of September 30, 2025, which expire at various dates through 2025 unless extended. The Company also had $31 million of standby letters of credit issued under a separate unsecured facility as of September 30, 2025, which do not have any impact on the Company's availability under its revolving credit facilities. The standby letters of credit are primarily related to the Company's workers' compensation programs and project development activities.

Interest Expense, Net

Interest Expense, Net was $53 million and $58 million for the three months ended September 30, 2025 and 2024, respectively, and was $157 million and $177 million for the nine months ended September 30, 2025 and 2024, respectively. Interest is capitalized on assets under construction for one year or longer with an estimated spending of $1 million or more. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset's estimated useful life. Capitalized interest was $17 million and $9 million for the three months ended September 30, 2025 and 2024, respectively, and was $46 million and $21 million for the nine months ended September 30, 2025 and 2024, respectively.

Covenant Agreements

The Covenants in the Company's Fifth Amended and Restated Credit Agreement (the "Current Credit Agreement") and the supplemental indentures governing the 1.512% Senior Notes due 2026, 4.75% Senior Notes due 2027, 3.50% Senior Notes due 2028, 3.50% Senior Notes due 2029, 2.625% Senior Notes due 2029, 3.75% Senior Notes due 2030 and 6.375% Senior Notes due 2032 (the "Indentures"), limit the Company's ability to incur additional indebtedness. Additional covenants contained in the Current Credit Agreement and the Indentures may, among other things, restrict the ability of the Company to dispose of assets, incur guarantee obligations, prepay other indebtedness, repurchase stock, pay dividends and make other restricted payments, create liens, make equity or debt investments, make acquisitions, modify terms of the Indentures, engage in mergers or consolidations, change the business conducted by the Company and its subsidiaries, and engage in certain transactions with affiliates. Such restrictions could limit the Company's ability to respond to changing market conditions, fund its capital spending program, provide for unexpected capital investments or take advantage of business opportunities.

As of September 30, 2025, the Company was in compliance with the covenants in the Current Credit Agreement and the Indentures.