Kloeckner cuts pricing on $435 million term loan to Libor plus 550 bps

By Sara Rosenberg

New York, July 16 - Kloeckner Holdings SCA revised pricing on its $435 million term loan to Libor plus 550 basis points from Libor plus 575 bps, according to a market source.

Additionally, the original issue discount firmed at 98, the wide end of the 98 to 98½ talk, the source said.

The 1.25% Libor floor was left unchanged.

The $500 million credit facility (Ba3/B) also provides for a $65 million revolver.

Jefferies & Co. is leading the deal.

Proceeds will help fund the company's recently completed recapitalization, under which it got the new debt facilities underwritten and funded by Jefferies and €190 million of cash equity from a group of new investors led by Strategic Value Partners LLC.

Other funds for the transaction came from €255 million of second-lien notes that priced last week at par to yield 11 5/8%.

The new debt and equity were used to fully repay €800 million of first-lien senior secured credit facilities at par plus accrued interest.

Through the transaction, total debt has been reduced to €630 million from €1.26 billion with the equity infusion and the exchange of second-lien and mezzanine debt for equity.

Leverage is about 4.5 times, down from around 9 times previously.

As a result of the recapitalization, the Strategic Value Partners investor group now owns Kloeckner.

Kloeckner is a Montabaur, Germany-based producer of films for pharmaceutical, medical device, food, electronics and general-purpose thermoform packaging, as well as printing and specialty applications.

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