Constantia holders may put back bonds following change of control

By Jennifer Chiou

New York, March 26 – Constantia Flexibles Group GmbH announced that holders of its €150 million of 4¼% fixed-rate senior bonds due 2017 have a put right after the issuer was acquired, thus constituting a change of control.

Holders have 30 days to require the company to purchase the bonds at par plus accrued interest to the redemption date.

When Constantia announced expectations of the change of control on March 9, it stated that it would call its fixed-and-floating-rate deeply subordinated 2013 hybrid bonds.

According to a company news release, its interests were acquired by an acquisition company ultimately controlled by Wendel.

The company previously said it plans to redeem the hybrid bonds as early as possible after the change of control.

As part of the acquisition, the company already noted plans to implement a new financing structure that would also include the repayment of most of its currently outstanding bank loans and the granting of security over most of its assets. This would leave any remaining creditors of Constantia Flexibles, including in particular the holders of the 4¼% bonds, structurally subordinated to the creditors of the acquisition company.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels. Questions may be directed to daniel.smith@cflex.com.

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