Klöckner Pentaplast - comment

The company now has support from almost 97% of SUN holders for the A&E, and the transaction is expected to settle tomorrow. The new 2nd Lien notes will receive 2.5% of PIK interest on top of their existing coupons, mature in 2029 and will be elevated to the SSN issuer, so sitting structurally pari passu with the SSNs, but contractually subordinated - the coercive element. The deal at first looked like a typical hold-out situation, but as macro growth forecasts are falling, it may yet be better to be in the elevated position. All eyes now move to the deal with the SSNs.