Sponsor SVP Builds Roughly €90M Stake in Kloeckner Pentaplast Subordinated Bonds

Reporting: Robert Schach Relevant Items: Offering Memorandum Core Analysis Sponsor Strategic Value Partners has been buying up the subordinated bonds in plastic packaging group Kloeckner Pentaplast, or KP, and has accumulated a roughly €90 million stake in the €300 million tranche, sources said. KP recently stated that it is working on engaging investment banks to lead the refinancing of its upcoming 2026 maturity wall. The group’s €125 million senior secured RCF matures in January 2026, followed by its $725 million and €600 million senior secured term loan Bs in February 2026, its €400 million senior secured notes in March 2026 and the €300 million senior notes in September 2026. At its 2023 investor day, it announced an ambitious business plan to grow adjusted EBITDA to €400 million in 2026 (from €262 million in 2022) and to delever to a total net leverage of about 4.75x in 2026 (from 7.8x). The group is still some way off that, reporting first-quarter 2024 total net sales of €468.5 million, down 11.4% year over year, and adjusted EBITDA at €58.9 million, down 6.9% year over year. Leverage was 6.8x based on €2.067 billion total net debt as of March 31. It also cut its[...]