Kloeckner Pentaplast
SVP Sounds Out Funds Over Private Credit Solution to Take Out Kloeckner SUNs
Tue 08/20/2024 12:24 PM
Sponsor Strategic Value Partners, or SVP, is sounding out funds over providing a private credit solution to its portfolio company plastic packaging group Kloeckner Pentaplast, or KP, in order to take out its senior unsecured notes ahead of an eventual refinancing of the senior secured debt. Interested funds are being asked to sign strict NDAs that prohibit them from communicating with any other potential lenders, sources said.
KP has hired Goldman Sachs to lead the refinancing of its upcoming 2026 maturity wall, sources said. The group’s €125 million senior secured RCF matures in January 2026, followed by its $725 million and €600 million senior secured term loan Bs in February 2026, its €400 million senior secured notes in March 2026 and the €300 million senior notes in September 2026.
KP will host a lender call at the end of August (on Aug. 30) during which it will provide an update on its refinancing plans, sources said. The company expects its second-quarter volumes to exceed prior year’s volumes by between 1% and 3%, and full-year volumes to grow from 4% to 7% year over year, as reported.
KP’s capital structure as of March 31 is below:
|
03/31/2024
|
EBITDA Multiple
|
|||
|---|---|---|---|---|
|
(EUR in Millions)
|
Amount
|
Maturity
|
Rate
|
Book
|
|
|
||||
|
€124.8M Senior Secured RCF due 2026
|
39.7
|
Jan-02-2026
|
|
|
|
$725M Senior Secured Term Loan B due 2026
|
650.7
|
Feb-12-2026
|
USD SOFR + 4.750%
|
|
|
€600M Senior Secured Term Loan B due 2026
|
600.0
|
Feb-12-2026
|
EURIBOR + 4.750%
|
|
|
€400M Senior Secured Notes due 2026
|
400.0
|
Mar-01-2026
|
4.250%
|
|
|
Total Senior Secured Debt
|
1,690.4
|
5.5x
|
||
|
Local Credit Facilities 1
|
79.3
|
|
|
|
|
Total Local Credit Facilities
|
79.3
|
5.8x
|
||
|
€300M Senior Notes due 2026 2
|
300.0
|
Sep-01-2026
|
6.500%
|
|
|
Total Senior Notes
|
300.0
|
6.8x
|
||
|
Lease Liabilities
|
101.3
|
|
|
|
|
Total Lease Liabilities
|
101.3
|
7.1x
|
||
|
Total Debt
|
2,171.0
|
7.1x
|
||
|
Less: Cash and Equivalents
|
(55.3)
|
|||
|
Net Debt
|
2,115.7
|
6.9x
|
||
|
Operating Metrics
|
||||
|
LTM Revenue
|
1,879.0
|
|||
|
LTM Reported EBITDA
|
306.0
|
|||
|
LTM Reorg EBITDA
|
237.1
|
|||
|
|
||||
|
Liquidity
|
||||
|
RCF Commitments
|
124.8
|
|||
|
Less: Drawn
|
(39.7)
|
|||
|
Plus: Cash and Equivalents
|
55.3
|
|||
|
Total Liquidity
|
140.4
|
|||
|
Credit Metrics
|
||||
|
Gross Leverage
|
7.1x
|
|||
|
Net Leverage
|
6.9x
|
|||
|
Notes: Capital structure on a post-IFRS 16 basis. "Reported EBITDA" is pro-forma adjusted EBITDA, as reported. "Reorg EBITDA" is adjusted EBITDA excluding pro-forma adjustments.Leverage based on "Reorg EBITDA". 1. Facilities entered into locally by subsidiaries of the company, including loan facilities, revolving credit facilities and overdrafts. Credit facilities are secured at the local level. 2. Secured on a first-ranking basis over its own collateral which includes shares held in the senior notes Issuer, material bank accounts of the senior notes Issuer and shares held in Kleopatra Senior Holding GP S.à r.l. The senior notes will also share collateral with the senior secured notes on a second ranking basis which includes shares held in the senior secured notes Issuer by the senior notes issuer, intercompany receivables and 10.1% of the shares in certain entities. |
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SVP declined to comment.
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