Klöckner Pentaplast Prices Notes

Klöckner Pentaplast, a producer of rigid plastic films for packaging, has priced 225 million euros in Senior PIK notes, the company announced Friday. Klöckner Pentaplast is a portfolio company of SVP Global. Proceeds will be used to partially refinance Preferred Equity Certificates that were issued when the company was acquired by a group led by SVP Global in a June 2012 recapitalization, the company said.

PRESS RELEASE
Klöckner Pentaplast (the “Company”) announced today that Kleopatra Holdings 1 (the “Issuer”), a holding company of the Klöckner Group outside the restricted group for the extant senior secured notes, has priced €225 million aggregate principal amount of Senior PIK Notes due 2017 (the “Notes”) at par. The Notes will bear interest at a rate of 10.250% cash / 11.000% PIK to be paid semi-annually. The Company anticipates that consummation of the offering will occur on May 8, 2013, and intends to use the net proceeds of the offering to partially refinance Preferred Equity Certificates (“PECs”) that were issued when the Company was acquired in a June 2012 recapitalization by a group of investors led by SVP Global. Remaining proceeds will be used to fund general corporate purposes and pay transaction related fees and expenses.

The Notes will be offered only to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act. The Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

The Company is the world’s leading producer of rigid plastic films for pharmaceutical, medical device, food, electronics, and general-purpose thermoform packaging, as well as printing and specialty applications and packaging solutions. Founded in 1965 in Montabaur, Germany, the Company has grown from its initial facility to 18 current global production facilities in 11 countries on four continents. The Company has sales of over €1.2 billion and employs more than 3,000 people committed to serving customers worldwide.

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