Sectors > Top Reports > Kloeckner Pentaplast Memo 091219

Kloeckner Pentaplast Memo 091219

Kloeckner Pentaplast. Value, Defensive Play. Finding The Optimal Position In The Capital Structure
PUBLISHED: 09 December 2019
PAGES: 169
PRODUCT CODE: KPERST0002
SUBMARKET: Kloeckner Pentaplast, Top Reports, Top Reports,

£2,670.00

Why Read?

  • Understand Q3 / 9m 2019 performance
  • Understand the business and its key drivers – exposure to raw material costs, in particular to polymer prices
  • Industry overview – main private and public competitors and comparative financial and operational performance 
  • Understand the acquisition of LINPAC in 2017 – rationale, expectations and integration developments
  • Understand the main historic corporate events with a focus on the 2017 refinancing, when the Term Loans (TL), RCF and PIK-Toggle Notes were issued
  • Understand the capital structure and the TL, RCF and PIK-Toggle Notes debt instruments
  • Historic financial analysis from 2014
  • Understand the relationship between pricing of the debt instruments and the prices of raw materials with detailed market analysis on the main polymers
  • Base and bear case forecasts to understand liquidity and refinancing risks in plausible scenarios
  • Detailed DCF, trading comparables and comparable transactions valuations
  • Recovery rate analysis for TL and PIK-Toggle Notes
  • Return analysis considerations on a possible investment

What’s New?

  • Detailed liquidity (and full financial) analysis with sensitivities to: revenue & EBITDA contraction potential; shocks to days payable outstanding (DPO), days sales outstanding (DSO) and days inventory outstanding (DIO)
  • Plastic packaging M&A transactions and EV / EBITDA multiples
  • Detailed valuation analysis – DCF, peer multiples and M&A transactions
  • Estimation of cash flow sweep impacting ability of PIK-Toggle Notes to receive cash vs PIK coupons

Questions Answered

  • Under what circumstances would the Term Loans and PIK-Toggle Notes experience loss relative to today’s prices?
  • What is the EBITDA potential of the business?
  • How big is the equity cushion in our base and bear cases and across a range of valuation methodologies?
  • How does Kloeckner Pentaplast’s financial performance compare with competitors and peers? 
  • How are key polymer prices developing and what is our outlook for these?

  1. View, Variant Perception & Recommendation

  2. Business Overview

  3. Industry Overview

  4. M&A - LINPAC Acquisition

  5. Historic Financial Analysis

  6. Group Structure & Capitalization

  7. Trading Update - Earnings Release Q2 2019

  8. Trading Update - Earnings Release Q3 2019

  9. Base Case Forecasts

  10. Bear Case Forecasts

  11. Valuation - Comparable Transactions

  12. Restructuring

  13. Investment Considerations

    Appendix

Kloeckner Pentaplast


Amcor Limited


Berry Global Group, Inc.


Bilcare


Faerch Plast


Tekni-Plex


Alfatherm


Perlen


AMB


Hagner


Sealed Air Corporation


Sonoco Products Company


Winpak Ltd


Huhtamaki Oyj


Flexopack


Viscofan, S.A.


Tredegar Corporation


Groupe Guillin S.A.


Jindal Poly Films Limited


Uflex Limited


Cosmo Films Limited


PSB Industries


Pro-Pac Packaging Limited


 


 


 

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