Klockner launches $724 million, €295 million term loans to investors

By Sara Rosenberg

New York, Oct. 5 – Klockner Pentaplast launched on its call on Wednesday a $724 million first-lien covenant-light term loan due April 28, 2020 and a €295 million first-lien covenant-light term loan due April 28, 2020 talked at Libor/Euribor plus 325 basis points with a 1% floor and an original issue discount of 99.875, according to a market source.

The term loans have 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing first-lien term loans priced at Libor/Euribor plus 400 bps with a 1% floor, to fund a recent acquisition in Turkey and for general corporate purposes.

The U.S. term loan size is unchanged from the current outstanding amount and the euro term loan includes €85 million of add-on debt.

Commitments are due at noon ET on Oct. 13, the source added.

The borrowers are KP Germany Erste GmbH, Klockner Pentaplast GmbH and Klockner Pentaplast of America Inc.

Klockner is a Montabaur, Germany-based manufacturer of rigid plastic film solutions.

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