Kloeckner lifts U.S. and euro term loan sizes, lowers pricing

By Sara Rosenberg

New York, April 20 – Kloeckner Pentaplast upsized its five-year U.S. equivalent first-lien covenant-light term loan to €668 million from €631 million and its euro five-year first-lien covenant-light term loan to €213 million from €200 million, according to a market source.

In addition, pricing on the term loans was reduced to Libor/Euribor plus 400 basis points from talk of Libor/Euribor plus 450 bps to 475 bps, and the original issue discount on the loans was tightened to 99¾ from 99, the source said.

As before, the term loans have a 1% floor and 101 soft call protection for six months.

The company’s now €981 million credit facility, up from €931 million, also includes a €100 million 4.75-year revolver.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities, Barclays, Deutsche Bank Securities and Jefferies are the leads on the deal.

Proceeds will be used to refinance existing debt and fund a shareholder dividend.

Kloeckner is a Montabaur, Germany-based provider of rigid plastic film.

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