Klöckner reports €229.72 million tenders of 11 5/8% notes, 10¼% notes

New York, April 28 – Klöckner Pentaplast GmbH issuers Kleopatra Holdings 1 and KP Germany Erste GmbH announced they will purchase a total of €229.72 million of notes in their tender offers for their respective €264.74 million of 10¼%/11% senior PIK notes due 2017 and €255 million of 11 5/8% senior secured notes due 2017.

Kleopatra accepted tenders for €49,283,133 of its 10¼%/11% senior PIK notes due 2017.

Following the tender there will be €215,456,825 still outstanding. These notes will be redeemed on May 13.

Meanwhile KP Germany Erste accepted tenders for €180,435,000 of its 11 5/8% senior secured notes due 2017.

Following the tender there will be €74,565,000 outstanding. These notes are expected to be redeemed on July 16 following the expected issuance of a notice of redemption on May 25.

The tenders were announced on April 16.

Kleopatra said it was offering to pay 102% of par for its 10¼% PIK notes.

As previously announced, notes not tendered will be redeemed at 102% of the principal amount on May 13.

KP Germany Erste was offering €1,080.50 per €1,000 principal amount for its 11 5/8% senior secured notes.

The company said it plans to redeem any notes that are not tendered on July 16. Sufficient funds to defease the notes will be deposited on the tender payment date.

Both tenders ended at 11 a.m. ET on April 27.

In each case, the issuer will pay accrued interest up to but excluding the payment date, which is expected to be no later than April 28. The Kleopatra interest from Nov. 15, 2014 will be paid in cash.

Both tenders apply only to Regulation S notes. No Rule 144A or Regulation D notes will be accepted, and holders of those notes must exchange them for Regulation S notes if they wish to participate.

The tenders are part of a refinancing transaction that includes a new €831 million term loan, a new revolver and an offering of new senior notes by Klöckner Pentaplast of America, Inc.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 or liability.management@credit-suisse.com) is the dealer manager for both offers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or kp@lucid-is.com) is the tender agent and information agent.

Kleopatra Holdings is a holding company for Klöckner Pentaplast, a Montabaur, Germany-based packaging producer. KP Germany Erste is a financing unit of Klöckner Pentaplast.

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