By Paul A. Harris
Portland, Ore., April 21 – German plastic packaging company Kloeckner Pentaplast priced a €300 million issue of five-year senior notes (expected ratings Caa1/CCC+) at par to yield 7 1/8% on Tuesday, according to a market source.
The yield printed at the tight end of yield talk in the 7¼% area.
Credit Suisse was the left lead. Barclays, Deutsche Bank and Jefferies were the joint bookrunners.
The Montabaur, Germany-based company plans to use the proceeds to fund tenders for the Kleopatra Holdings 1 €264.74 million of 10¼%/11% senior PIK notes due 2017 and the KP Germany Erste GmbH €255 million of 11 5/8% senior secured notes due 2017.
| Issuer: | Kloeckner Pentaplast of America, Inc.
|
| Amount: | €300 million
|
| Maturity: | May 1, 2020
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Credit Suisse
|
| Joint bookrunners: | Barclays, Deutsche Bank, Jefferies
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 728 bps
|
| First call: | May 1, 2017 at 103.563
|
| Trade date: | April 21
|
| Settlement date: | April 28
|
| Expected ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% area
|
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