(Bloomberg) -- Packaging company Kloeckner Pentaplast, backed by Strategic Value Partners, is reaching out to investors to raise about €2 billion ($2.1 billion) of capital to refinance its debt load.
The German firm is looking for €1.5 billion in senior debt, which may be split between euros and dollars, according to people familiar with the plans. It also wants around €500 million in junior debt to de-lever the company, which may be in the form of preferred or common equity, they said.
Kloeckner is sounding out both private credit and bank lenders, while SVP may also contribute some of the capital, said the people, who asked not to be identified discussing private information. The split between senior and junior debt could vary depending on appetite.
Kloeckner, which produces packaging used in the food and pharmaceutical sectors, has been hit by weaker consumer demand and volatility in raw material prices like others in the industry. While the company has assured creditors that it seeks to refinance maturities either this year or in early 2025, the prices of its bonds have oscillated.
Goldman Sachs Group Inc. is among the advisers on the transaction, the people said. Spokespeople for SVP and Goldman Sachs declined to comment.
Some secured creditors of Kloeckner had already started organizing, Bloomberg previously reported. Kloeckner Pentaplast’s 2026 maturities include €700 million in secured and unsecured notes, as well as term loans of €600 million and $725 million.
SVP led a group of investors to acquire the packaging company from Blackstone Inc. in 2012 following a restructuring. The fund injected around €150 million into Kloeckner last year to help cut leverage and bolster earnings.
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