Klockner Pentaplast reworks U.S. and euro term loan sizes, pricing

By Sara Rosenberg

New York, June 26 – Klockner Pentaplast downsized its U.S. dollar five-year covenant-light term loan B to €816 million equivalent from €855 million equivalent and its euro five-year covenant-light term loan B to €692 million from €725 million, according to a market source.

Additionally, pricing on the U.S. term loan was lifted to Libor plus 425 basis points from talk of Libor plus 350 bps to 375 bps and pricing on the euro term loan was increased to Euribor plus 475 bps from talk of Euribor plus 400 bps to 425 bps, the source said.

As before, the U.S. term loan B has a 1% Libor floor, the euro term loan B has a 0% floor, and both term loans have an original issue discount of 99 and 101 soft call protection for six months.

The company’s credit facilities also include a €150 million 4.5-year revolver priced at Euribor plus 300 bps with a 0% floor.

Credit Suisse Securities (USA) LLC and Rabobank are the bookrunners on the deal.

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

Proceeds will be used to help refinance existing debt, fund the acquisition of Linpac Senior Holdings Ltd. and finance a distribution to the shareholders of the KP Group.

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

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