Klockner Pentaplast - comment

As the primary markets open up to “story” credits, the SVP owned German plastic packaging group appears to be pre-marketing a €2 billion debt refinancing which includes a €1.5 billion in senior secured tranche, which may be split between euros and dollars and €500 million in junior debt which may be in the form of preferred or common equity, As is the trend these days, both the public markets and private credit lenders are being approached.  SVP may also need to inject more equity to facilitate the refinancing. The company is relying on stronger H2 2024 results to help with that process as well. We are holding a 2.2% position in the bonds.