Why Read?

• 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?