Klöckner companies start tenders for 11 5/8% notes, 10¼% PIK notes

New York, April 16 – Klöckner Pentaplast GmbH issuers Kleopatra Holdings 1 and KP Germany Erste GmbH announced tender offers for their respective €264.74 million of 10¼%/11% senior PIK notes due 2017 and €255 million of 11 5/8% senior secured notes due 2017.

Kleopatra is offering to pay 102% of par for its 10¼% PIK notes.

As previously announced, notes not tendered will be redeemed at 102% of the principal amount on May 13.

KP Germany Erste is offering €1,080.50 per €1,000 principal amount for its 11 5/8% senior secured notes.

The company plans to redeem any notes that are not tendered on July 16. Sufficient funds to defease the notes will be deposited on the tender payment date.

Both tenders end at 11 a.m. ET on April 27, according to notices from the companies.

In each case, the issuer will pay accrued interest up to but excluding the payment date, which is expected to be no later than April 28. The Kleopatra interest from Nov. 15, 2014 will be paid in cash.

Both tenders apply only to Regulation S notes. No Rule 144A or Regulation D notes will be accepted, and holders of those notes must exchange them for Regulation S notes if they wish to participate.

The tenders are part of a refinancing transaction that includes a new €831 million term loan, a new revolver and an offering of new senior notes by Klöckner Pentaplast of America, Inc.

Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763 or liability.management@credit-suisse.com) is the dealer manager for both offers. Lucid Issuer Services Ltd. (+44 20 7704 0880 or kp@lucid-is.com) is the tender agent and information agent.

Kleopatra Holdings is a holding company for Klöckner Pentaplast, a Montabaur, Germany-based packaging producer. KP Germany Erste is a financing unit of Klöckner Pentaplast.

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