Strategic Value Partners recoups Klöckner investment

Distressed specialist Strategic Value Partners (SVP) is poised to recoup its investment in Klöckner Pentaplast by refinancing existing debt with new-issue PIK notes.

German plastics company Klöckner Pentaplast, acquired 10 months ago by Strategic Value Partners (SVP) after its previous owner, The Blackstone Group, lost control of the business, is refinancing its existing debt by issuing €225 million of senior PIK (payment-in-kind) notes.

The PIK notes offer investors 11 percent compounded interest rate to be repaid at maturity.

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