Klockner cuts spread on €295 million term loan to Euribor plus 300 bps

By Sara Rosenberg

New York, Oct. 14 – Klockner Pentaplast reduced pricing on its €295 million first-lien covenant-light term loan due April 28, 2020 to Euribor plus 300 basis points from Euribor plus 325 bps and tightened the issue price to par from 99.875, according to a market source.

The euro term loan still has a 1% floor and 101 soft call protection for six months.

Pricing on the company’s $724 million first-lien covenant-light term loan due April 28, 2020 was unchanged at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.875.

The U.S. term loan also has 101 soft call protection for six months.

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

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.

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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