Germany's Klockner talks €255 million five-year notes at 11¾% to 12%

By Paul A. Harris

Portland, Ore., July 12 - Germany's Klockner Pentaplast GmbH & Co. KG talked its €255 million offering of five-year senior secured second-priority notes (expected ratings Caa1/CCC) to yield 11¾% to 12%, market sources said on Thursday.

Earlier guidance had the deal coming at 11½% to 12%, according to a buyside source.

The order books close at 7 a.m. ET for European accounts and at 9 a.m. ET for accounts in the United States.

The bonds are expected to price on Friday.

Jefferies & Co. has the books.

The Rule 144A and Regulation S notes become callable in 2.5 years at par plus 75% of the coupon.

Proceeds will be used to refinance debt.

The issuing entity will be kp Germany Erste GmbH, a subsidiary of the Montabaur, Germany, producer of chemical films used in the pharmaceutical, food, medical device, packaging and other industries.

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