Kloeckner sets meeting for €831 million-equivalent dual-currency loans

By Paul A. Harris

Portland, Ore., April 7 – Germany-based Kloeckner Pentaplast plans to put in place a €931 million-equivalent credit facility, according to a market source.

The deal, which is being led by arranger Credit Suisse, kicks off at a bank meeting on Thursday, with commitments due on April 22.

It includes two tranches of five-year first-lien covenant-light paper.

Featured is a dollar-denominated tranche sized at €631 million equivalent, coming with talk of Libor plus 450 basis points to 475 bps at 99.

There is also a €200 million tranche with talk of Euribor plus 475 bps to 500 bps at 99.

Both tranches come with 1% Libor floors and have six months of soft call protection at 101.

The facility also includes a €100 million 4.75-year revolver.

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

The Montabaur, Germany-based packaging producer plans to use the proceeds to refinance debt and to fund a shareholder dividend.

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