(Bloomberg) -- Packaging firm Kloeckner Pentaplast is working with banks including JPMorgan Chase & Co. to refinance debt ahead of a potential sale or listing of the company, according to people familiar with the matter.
Private equity owner SVPGlobal wants to replace the 425 million euros ($521 million) of payment-in-kind notes that are due to mature in 2023 with new term loans and bonds, the people said, asking not to be identified because they're not authorized to speak publicly.
SVPGlobal has owned Kloeckner Pentaplast since 2012 when it took control of the firm as part of a restructuring, and may consider a sale or IPO of the business in the wake of the refinancing, the people familiar said.
Spokespeople for SVP and JPMorgan declined to comment.
The cost of raising bonds and loans fell during the fourth quarter amid further central bank support and the emergence of vaccines, making the prospect of refinancing debt more palatable for junk-rated companies in Europe. Already this year, security systems firm Verisure Holding AB has embarked on a refinancing of its short-dated loans and bonds.
Read more: SVP's Kloeckner Pentaplast Sees Adjusted Ebitda Up 30% in 3Q
Kloeckner Pentaplast also has about $1.7 billion of term loans due 2022 in a mix of euros and dollars, data compiled by Bloomberg show.
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