Klöckner Pentaplast takes ESG margin route for refi loan

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By Owen Sanderson
25 Jan 2021

Plastics packaging firm Klöckner Pentaplast has included an ESG margin ratchet in the loan leg of its refinancing, which was announced on Monday, a feature set to become increasingly common in European leveraged credit this year. Unlike previous deals with this structure, KP will take this structure to the dollar market, as well as euros.

The company, owned by Strategic Value Partners since a 2012 restructuring, had flagged to investors that it was looking to refinance its capital structure early this year, aiming in particular to take out its 2023 PIK toggle debt, which carries a 9.25% coupon.

The refi package will be ...

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