Klockner Pentaplast updates U.S. and euro term loan sizes again

By Sara Rosenberg

New York, June 29 – Klockner Pentaplast downsized its U.S. dollar five-year covenant-light term loan B to $835 million from a revised amount of €816 million equivalent and an initial size of €855 million equivalent, according to a market source.

Also, the company set its euro five-year covenant-light term loan B size at €725 million, up from a revised amount of €692 million but in line with the initial size of €725 million, the source said.

In addition, the 101 soft call protection on the term loans was extended to one year from six months.

Pricing on the U.S. term loan is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and pricing on the euro term loan is Euribor plus 475 bps with a 0% floor and a discount of 99.

Earlier in syndication, pricing on the U.S. term loan was lifted from talk of Libor plus 350 bps to 375 bps, and pricing on the euro term loan was increased from talk of Euribor plus 400 bps to 425 bps.

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.

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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