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Industrial liner maker Loparex is in the market with a coercive exchange offer targeting left-out creditors after the company secured commitments from the first-lien ad hoc group to fund a $135mn new money portion of a super-priority loan, sources said.

The deal framework is aligned with LFI’s report from late last month, detailing the planned terms and structure of the liability management exercise that will, in effect, create five layers of debt in the Pamplona Capital-owned company.

The 1L ad hoc group—representing around 75% of the company’s cross-border first-lien term loan—has agreed to exchange its positions into new debt while also kicking in the $135mn of new money, which is structured as part of a $175mn super-priority facility, sources noted, citing a notification from the company to lenders from earlier this week. The remaining first-lien lenders have until March 15 to participate, sources said.

Of note, the super-priority tranche will be comprised of $135mn in new money, a $20mn PIK fee and a $20mn roll-up of existing 1L debt from the ad hoc group, sources noted. Existing 1L lenders that are not part of the ad hoc group will be allowed to swap their debt holdings into a first-lien third-out tranche at 65, ranking senior to a fourth-out tranche created by way of a second-lien discounted exchange at 50 cents on the dollar. Meanwhile non-participating 1L lenders will be left at the bottom of the revised capital structure.

As reported, the 1L group is advised by Lazard and Akin Gump, while the company has been consulting with PJT. The sole second-lien holder, Blue Owl, is working with Perella Weinberg and Paul Hastings.

The $370mn S+450 USD term loan due July 2026 and $186mn E+525 euro TL due 2026 has been thinly quoted. The USD TL is quoted 71-73.5 today, roughly unchanged over the past month, Markit shows.

Deal terms were detailed in LFI’s Feb 20 report, including the following chart made by LFI:



Skylar Chen
LevFin Insights


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