Reynolds Group Holdings, owned by New Zealand investor, Graeme Hart, may use US$5 billion in leveraged loans and junk bonds to finance the takeover of Pactiv Corp, a manufacturer of garbage bags.Credit Suisse, Hart's long-time banker, is arranging the funding, Bloomberg reported.Reynolds, owned by Rank Group, has $5 billion in bridge financing to Rank's Chicago unit from Credit Suisse, HSBC Holdings Plc and Australia & New Zealand Banking Group Ltd.Reynolds plans to refinance most of this with the sale of junk bonds to mostly US investors. It will be the largest junk bond financing this year.The commitment package allows the permanent financing to be a mix between loans, senior secured notes and senior unsecured notes, Pactiv's chief financial officer, Allen Hugli, told Bloomberg. Reynolds has the option to issue US$750 million more in term loans under its existing credit agreement and can get an amendment to issue additional bank debt.Bloomberg reported that Reynolds paid a margin of 4.25 percentage points over Libor on its existing debt.