Reuters: Deals: Blackstone to reinvest in Kloeckner: sources

Reuters: Deals Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Blackstone to reinvest in Kloeckner: sources Mar 12th 2012, 17:21 By Claire Ruckin LONDON | Mon Mar 12, 2012 1:21pm EDT LONDON (Reuters) - Private equity firm Blackstone (BX.N) has agreed to reinvest in its struggling German plastic films firm Kloeckner Pentaplast alongside senior lenders Oaktree in a bid to restructure its debt, banking sources said on Monday. Blackstone bought Kloeckner from Cinven in 2007, backed by 1.25 billion euros ($1.64 billion) of leveraged loans. The company breached its December 31 senior leveraged covenants but managed on Friday to secure a covenant waiver until the end of June. A loan covenant breach had been expected since November when Kloeckner asked lenders to form groups for a restructuring and commissioned an independent business review. <ID: nRLP57867a> Distressed debt investment fund Oaktree Capital bought a large portion of Kloeckner's loans in the secondary markets and together with Blackstone Private Equity is pushing for a debt-for-equity swap. Blackstone declined to comment. Junior lenders could suffer heavy losses in a restructuring. They have until March 21 to agree to a consensual restructuring otherwise Lazard, which has been appointed as M&A adviser, will go forward with a sale of the group. Kloeckner's 187 million euro mezzanine loan is quoted at around 7 percent of face value in the secondary loan market, down from 32 percent in early November, according to Thomson Reuters LPC data. A 187 million euro second lien loan is quoted at 18 percent, down from 42.8 percent in the same period, the data showed.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions